Morocco Central Bank Holds Policy Rate at 3.25%

The Bank al-Maghrib of Morocco maintained its main policy rate unchanged at 3.25% in the face of steady inflation.  The Bank said: "In this context where the central inflation forecast remains consistent with the price stability objective and the balance of risks is slightly tilted to the upside, the Board decided to keep the key rate unchanged at 3.25 percent."

Previously the Bank also held interest rates unchanged in March this year; it last changed its interest rate in March 2009 when it reduced the rate 25bps to 3.25%.  The Bank said in its statement that it is forecasting inflation of 1.4% in 2011 (previous forecast 2.1%), and that it expects bank lending to grow by 8% for 2011 (compared to 6.8% growth in April), and total GDP growth is forecast at 4.5-5.5% this year. 

www.CentralBankNews.info