Rabat, Morocco (TMT)- The board of Morocco’s central Bank, Bank-Al Maghrib, held today its first quarterly meeting of the year. The board expects that the Kingdom’s growth forecast for 2016 won’t exceed 1%.
Morocco’s central Bank, taking into consideration the weak nonagricultural growth, the central inflation projection, the continued reduction of the budget deficit and the strengthening of foreign exchange, said that it has decided to reduce the key rate by 25 basis points, meaning its benchmark interest rate was downed to 2.25 percent from 2.5 percent, in a bet to boost growth.
A growth of no more than 1% is, as a matter of fact, the lowest the Kingdom has recorded for years now.
The share of the agricultural products value in Morocco’s GDP will decrease by 13.8%, says Morocco’s central Bank.
The nonagricultural value share in the GDP will increase by around 2.9%, but it won’t compensate for the relatively strong decrease in the agricultural value.
The Moroccan Times.