The Bank of Morocco (Bank Al-Maghrib) kept its key interest rate at 2.25 percent, in line with expectations of inflation and growth.
According to a central bank statement, inflation averaged 1.9 percent by the end of 2018, as a result of rising food prices. The bank expected the inflation to slow down to 0.6 percent in 2019, before settling at 1.1 percent by 2020.
The bank forecast growth of 3.1 percent for 2018 compared to 4.1 percent in 2017, with agricultural added value slowing from 15.4 percent to 4.3 percent, and a slight increase in the growth rate of non-agricultural activities from 2.7 to 2.9 percent.
The central bank expected Morocco's budget deficit to widen to 4.1 percent this year, excluding the privatization revenues, compared to a deficit of 2018 at 3.7 percent. The expectations were higher than the ones of the Moroccan government at 3.7% and 3.3%, including the privatization revenues.
Source: (CNBC Arabic Website, Edited)
