Morocco keeps interest rate unchanged at 2.25%

RABAT- Morocco's central bank left its benchmark interest rate unchanged at 2.25 percent on Tuesday, saying current borrowing costs are consistent with medium-term inflation and growth prospects.

Inflation, driven mainly by food prices, was expected to reach 2.1 percent in 2018 before easing to 1.2 percent in 2019, the bank said in a statement.

Bank Al Maghrib expected Morocco’s economy to grow by 3.5 percent in 2018, citing an improvement in agricultural output, and 3.1 percent in 2019.

Agriculture represents 14.5 percent of Morocco’s GDP. The north African country expects this year an exceptional cereals harvest of 10.3 million tonnes.

(Reporting by Ahmed Eljechtimi; editing by John Stonestreet) ((ahmed.eljechtimi@thomsonreuters.com;))