Increase in Interest Rates in Morocco

The Moroccan central bank raised the main interest rate by 50 basis points to 3% on Tuesday in an effort to curb inflation. The bank indicated that Morocco's foreign exchange reserves will reach 359 billion dirhams (35 billion dollars) in 2023, sufficient to cover import needs for five months and 21 days. It added that inflation, driven by rising food prices, is expected to decrease to 5.5% in 2023 after reaching 6.6% last year. Additionally, Morocco's economic growth rate is projected to rise to 2.6% this year from 1.2% in 2022, amid forecasts of a decline in the average grain harvest to 5.5 million tons. The current account deficit is expected to shrink to 2.8% of GDP in 2023, down from 3.9% in 2022, due to an anticipated decline in energy imports.