Mon, 25 Sep 2023

Morocco raises benchmark interest rate to 2 pct

28 Sep 2022, 02:30 GMT+10

RABAT, Sept. 27 (Xinhua) -- Morocco's central bank raised its benchmark interest rate by 50 basis points to 2 percent on Tuesday, following its third quarterly meeting of 2022.

Bank Al-Maghrib's rate increase aims to ensure price stability amid soaring inflation, and guarantee a rapid return of prices to stability, the bank said in a statement following the meeting.

The bank will continue to monitor closely the economic developments and the evolution of inflationary pressures, it added.

According to the statement, inflation in Morocco will accelerate to 6.3 percent on average in 2022 compared to 1.4 percent in 2021.

The North African country's economic growth will slow down to 0.8 percent in 2022, from 7.9 percent in 2021, as a result of a 14.7-percent decline in agricultural sector because of severe drought and a slowdown to 3.4 percent in non-agricultural activities, it added.

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