RABAT, March 22 (Xinhua) -- Morocco's central bank on Tuesday decided to keep its benchmark interest rate unchanged at 1.5 percent following its first quarterly meeting of 2022.
Bank Al-Maghrib decided to maintain its accommodative monetary policy to support the country's economy and mitigate the impact of the adverse international environment, the bank said in a statement.
The impact of the Ukraine-Russia conflict on financial markets, commodity prices, trade and economic activity would adversely affect the Moroccan economy, which is already troubled by a shortage of rainfall as agriculture is a major pillar, it said.
The severe drought will be reflected in the country's economic growth in 2022, which is expected to grow by 0.7 percent, down from 2.9 percent in the earlier forecast and the 7.3 percent growth in 2021, the bank said.
Inflation in Morocco is predicted to surge to 4.7 percent this year, while the current account deficit is expected to deepen to 5.5 percent of the annual GDP, compared with 2.6 percent in 2021, the bank added. ■
