The Central Bank of Morocco kept its benchmark interest rates unchanged at 2.25%, indicating that current borrowing costs are in line with the medium-term outlook for inflation, growth and public finance.
Following its board meeting, the bank predicted that inflation in Morocco would slow to 0.7% in 2019 from 1.9% last year, thanks to lower food prices before rising to 1.2% in 2020 as domestic demand improves.
Morocco's central bank also forecast growth to slow to 2.7 percent in 2019 from 3 percent in 2018 as a result of slower agricultural activity. The central bank estimated cereal yields at 5.2 million tons this year, or about half the size of last year's crop due to lack of rain.
Growth is expected to rise again to 3 percent in 2020, assuming a grain harvest at eight million tons, according to the central bank. Revealing that the current account deficit is expected to decline to 5.1% in 2019 and to 3.6% in 2020 from 5.5% in 2018. The deficit will shrink due to lower energy import bill and an increase in exports, especially the automotive sector.
Source (Alarabiya.net, Edited)
