The National Bank of Morocco left its benchmark interest rate steady at 2.25% during its regular meeting on December 16, 2025, marking the third consecutive hold. Policymakers said the current stance remains appropriate amid ongoing global economic uncertainty and domestic weather risks. They noted that inflation continues to evolve at low levels, driven in particular by the improved supply food products. The annual inflation rate in Morocco slowed to 0.1% in October 2025, the lowest since March 2021, down from 0.4% in September. Inflation is expected to gradually rise toward the price stability objective, from 0.8% this year to 1.3% in 2026 and 1.9% in 2027. Regarding domestic activity, the Board noted strong performance in non-agricultural sectors and signs of labor-market recovery, with momentum expected to persist over the medium term, supported by investment. Economic growth is projected to reach 5% this year and average 4.5% over the next two years.
