Morocco's central bank held its benchmark interest rate steady ​at 2.25% on ⁠Tuesday, judging that inflation was on track to ‌meet its medium-term price stability target supported by improved economic ​growth. Inflation is expected to average 1.5% in 2026, before picking ​up to 2.1% ​in 2027, after hovering around 0.8% over the previous two years, the central bank said after ⁠its quarterly meeting.

Growth is expected to accelerate to 5.2% this year from 4.9% in 2025, supported by a rebound in agricultural output after abundant rainfall ended ​a ‌seven-year drought. Assuming ⁠an average harvest, ⁠growth would slow to 3.1% in 2027. Morocco's current account deficit ​is expected to widen to ‌4% of gross domestic product in ⁠2026 from 2.4% a year earlier, largely due to higher energy imports.

Citing the impact of the Middle East conflict, the central bank said the energy import bill is projected to rise by 26% to 135 billion dirhams ($14 billion) this year before easing to 114.4 billion dirhams in 2027. Phosphate and fertiliser ‌exports, remittances from Moroccans abroad, tourism revenues and foreign ⁠direct investment are all expected to ​increase, it added. Foreign exchange reserves are projected to rise to 542 billion dirhams ($57 billion) by 2027, covering a ​little over ‌six months of imports, the central bank ⁠said.

(Reporting by Ahmed ​Eljechtimi; Editing by Aidan Lewis and Gareth Jones)