By Mahmoud Kassem
Morocco’s central bank said it held its benchmark interest rate at the lowest level in more than two years as inflation remains “broadly moderate” and amid concern about worsening growth prospects in developed economies.
The Rabat-based central bank, which meets every three months to review monetary policy, left its key rate at 3.25 percent, according to a statement on its website today.
Demonstrations began in Morocco on Feb. 20 demanding more freedom and an end to corruption, after revolts that unseated the leaders of Tunisia and Egypt.
In August, the annual core inflation rate was 2.2 percent, compared with 2 percent the month before. Morocco’s economy may expand between 4.5 percent and 5.5 percent this year if global economy recovers, the central bank said in a statement.
Explaining its decision to maintain the rate, the bank said that “the central inflation forecast remains consistent with the price-stability objective and the balance of risks is tilted to the downside.”
The central bank last changed its interest rate in March 2009, lowering it by quarter of a percentage point.
