Bank Al-Maghrib strengthens its accommodative stance despite imported inflation risk
As anticipated by the AGR scenario of a key rate cut in 2025 (See. Key Rate - December 2024), Bank Al-Maghrib has decided to reduce its KR at its 1st monetary policy meeting of 2025 for the 3rd time since June 2024 to 2.25%.
BAM is accelerating its accommodative stance, thus confirming its commitment to support economic growth in an increasingly unstable global context marked by geopolitical tensions, the beginnings of a trade war, the risks of inflation return, and slowing growth.
This decision is out of step with the consensus among market participants for a status quo (See. Key Rate Expectations - March 2025), but remains in line with the international monetary trend. Recall that half of the 35 major Central Banks lowered their KR in Q1-25, like the ECB, the BOC, the BOE and the Riksbank.
