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Morocco Lowers Key Interest Rate and Enhances Support for Small Enterprises

The Central Bank of Morocco has lowered its key interest rate to 2.25% to stimulate economic activity. Forecasts show inflation stabilizing around 2% while economic growth is expected at 3.9% in 2025. A new program will support financing for very small enterprises.

The Central Bank of Morocco has reduced its key interest rate to 2.25% from the previous 2.5% during the March 2025 meeting, aligning borrowing costs with 2022 figures. This regulatory adjustment follows earlier rate cuts made in June and December of the preceding year, aiming to stimulate economic activity.

The central bank remains optimistic about inflation trends, forecasting it to stabilize around 2% for the next two years, despite a current uptick from 0.7% in December 2024 to 2% in January 2025. This moderate inflation aligns with the broader economic projections.

Economic growth in Morocco is forecasted to reach 3.9% in 2025 and 4.2% in 2026, marking an increase from approximately 3.2% in 2024. Such predictions indicate a recovery trajectory for the nation’s economy heading into the next few years.

In addition to rate adjustments, new initiatives have been implemented to enhance financing support for very small enterprises. This program entails refinancing for participating banks at a preferential rate, set at the key policy rate minus 25 basis points, facilitating access to capital for smaller business ventures.

In summary, the Central Bank of Morocco has implemented a 25 basis points reduction in the key interest rate, aiming to promote economic activity while managing inflation expectations. With projected economic growth improving and new support programs for small enterprises, Morocco is taking measures to bolster its financial environment effectively.

Original Source: www.tradingview.com

Samir Khan

Samir Khan is a well-respected journalist with 18 years of experience in feature writing and political analysis. After graduating from the London School of Economics, he began his career covering issues related to governance and societal challenges, both in his home country and abroad. Samir is recognized for his investigative prowess and his ability to weave intricate narratives that shed light on complex political landscapes.

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