Morocco’s central bank, Bank Al-Maghrib (BAM), left its benchmark interest rate unchanged at 2.25% on Tuesday, opting for caution as inflation remains subdued and growth momentum shows signs of unevenness. Inflation averaged just 1.1% in the first eight months of 2025, with BAM projecting 1% for the year, similar to 2024, before quickening to 1.9% in 2026. Core inflation is expected to dip to 1.1% this year before rebounding. The bank highlighted that its previous rate cuts have already eased financing conditions, with lending rates to the non-financial sector falling 59 basis points since June 2024. BAM expects foreign reserves to climb to MAD 418 billion ($41 billion) by year-end, equivalent to 5.5 months of imports.