Morocco’s central bank held its key interest rate steady at 2.25% following its September 23, 2025 meeting, reflecting confidence in moderate inflation and a cautious stance amid global uncertainty. Governor Abdellatif Jouahri of Bank Al Maghrib announced further measures to ease financing for businesses, particularly small and micro-enterprises.
Recent national accounts show a continued uptick in non-agricultural economic activity, building on momentum from 2024. Job growth accelerated in late 2024 and early 2025, benefiting from ambitious infrastructure investments. Despite underlying challenges—like water stress and ongoing global conflicts—the Moroccan labor market has shown resilience, with a surge in new job creation, especially outside agriculture.
Inflation remains subdued, averaging 1.1% for the first eight months of the year. Projections from Bank Al Maghrib indicate a stable rate around 1% for 2025, before an expected rise to 1.9% in 2026. Core inflation, too, is forecast to dip from 2.2% last year to 1.1% this year, with a slight increase predicted for next year.
Although Morocco has managed to keep inflation in check, Bank Al Maghrib points to elevated uncertainties over the national and global economic outlook—including the impact of hydrological stress and international conflicts. Policymakers plan to continue supporting business financing and are closely monitoring external risks that could affect Morocco’s progress and its labor market stability.
