RABAT, March 27 (Reuters) – Morocco’s central bank said on Tuesday it was cutting its benchmark interest rate by 25 basis points, its first rate move for three years, after bad weather and the eurozone crisis hit economic growth.
The central bank said in a statement rates would go to 3.0 percent from 3.25 percent. The change was the first since March 2009.
The central bank said it had decided to cut due to a “palpable decline in economic activity”.
It said GDP growth was likely to fall below 3 percent in 2012, far below the 4.2 percent forecast in the budget, after bad weather hit the agriculture sector and because of a slowdown in Europe, which is one of Morocco’s main trade partners. (Reporting by Souhail Karam, Writing by Lin Noueihed/)
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