Morocco’s central bank cut its borrowing rate to 2.75% from 3% as inflation drops thanks to lowering food prices and easing external inflationary pressures, the bank said following its board meeting. Inflation is expected to drop to 1.5% in 2024, compared with 6.1% in 2023 and 6.6% in 2022, it said. Consecutive droughts have slashed Morocco’s cereals output weighing on overall economic growth, which the bank sees dropping to 2.8% this year, after 3.4% last year. The bank expects the country’s economic growth to rebound to 4.5 % in 2025. Morocco’s foreign exchange reserves are seen at 38 billion dollars, enough to cover 5 months and a half of imports.
