Morocco's Central Bank reduces key rate to 2%

Morocco's central bank (Bank Al-Maghrib) on Tuesday decided to reduce the key policy rate by 25 basis points to 2 percent.

The Board, which held its first quarterly meeting of the year, analysed recent economic developments as well as the macroeconomic forecasts prepared by the Bank for the next eight quarters. It particularly dwelled on the repercussions of the unfavourable climatic conditions prevailing in the country and of the global spread of the Covid-19 disease, Bank Al-Maghrib said in a release.

It noted that «the rapid evolution of this pandemic requires a frequent update of the situation assessment and of the economic forecasts», it added.

«Taking into account these assessments, as well as the inflation evolution over the medium term, the Board decided, with a view to supporting economic activity, to reduce the key policy rate by 25 basis points to 2 percent and to continue to monitor all these developments very closely», it said.