By Enes MorinaMorocco's central bank cut its key interest rate Tuesday, making it the first north African central bank to lower borrowing rates in a sign of confidence that inflation had been tamed. Morocco's central bank cut its key interest rate to 2.75% from 3%, as headline inflation continues to hover just above zero. Capital Economics expects the key interest rate to fall by half a percentage point more by the end of this year. The Moroccan move comes nearly three weeks after the European Central Bank lowered its key rate for the first time since 2019. The rate cut in the eurozone--which is the country's largest trading partner--gave the central bank room to lower its own key rate, as the Moroccan dirham is pegged primarily to the euro.

Source: The North Africa Journal June 25, 2024 13:42 UTC