Bank Al-Maghrib monetary policy

On September 22, Bank Al-Maghrib confirmed its decision to maintain the benchmark interest rate at 2.25% during its third quarterly meeting of 2026. The central bank cited high levels of uncertainty regarding the economic outlook and geopolitical tensions affecting global supply chains as primary factors for this decision.

Economic projections for Morocco indicate a growth rate of 4.4% in 2026, a deceleration from the 4.9% recorded in 2025. While the agricultural sector is anticipated to see a 16% rebound in 2026 due to improved cereal harvests, non-agricultural activities are forecast to experience slower growth. Growth is expected to slow further to 2.9% in 2027.

Inflation is expected to remain moderate, averaging 0.7% for 2026 before rising to 1.5% in 2027. This stability is attributed to low food prices and government subsidies for transport and energy, including the maintenance of fixed prices for electricity and butane gas, which have mitigated the impact of rising international energy costs.

In the foreign exchange market, the Moroccan dirham has shown mixed performance. During the July-August 2026 period, the currency strengthened by 0.2% against the euro but declined by 0.6% against the US dollar.