Bank Al-Maghrib (the central bank of Morocco) on Tuesday raised its main interest rate by 50 basis points to 3 percent, saying the decision was necessary to curb inflation.
The bank said after a meeting of its board of directors that inflation, caused by higher food prices, is expected to decline to 5.5 percent in 2023, after reaching 6.6 percent last year.
Food price inflation in Morocco increased by 16.8 percent in January, prompting the government to impose restrictions on the export of some vegetables.
The bank expects Morocco’s economic growth rate to rise to 2.6 percent this year from 1.2 percent in 2022, in light of expectations of a decline in the average grain yield of 5.5 million tons.
He added that the current account deficit is expected to narrow to 2.8 percent of GDP in 2023, down from 3.9 percent in 2022, due to an expected decline in energy imports.
The bank indicated that Morocco’s foreign exchange reserves will reach 359 billion dirhams ($35 billion) in 2023, which is enough to cover import needs for five months and 21 days.
Sarah Belkacemi, a spokeswoman for the bank, said that the press conference of the governor of Bank Al-Maghrib, Abdellatif Jouahri, was canceled for personal reasons.