Morocco’s central bank holds benchmark interest rate steady at 1.5%

MOROCCO’S central bank kept its benchmark interest rate unchanged at 1.5% as it seeks to help the economy deal with the fallout of the coronavirus pandemic.

The central bank expects economic growth to contract 6.6% this year, citing the impact of COVID-19-related restrictive measures and a decline in farm output hit by drought. Growth is projected to rebound to 3.6% in 2021.

Inflation, triggered mainly by food prices, is seen at 0.7% in 2020 and 2021, before picking up to 1.3% in 2022.