Morocco’s central bank maintained its benchmark interest rate at 3.0%, keeping borrowing costs at their highest level since August 2014, following three consecutive rate hikes totaling 150 bps, and aims to allow the effects of the current policy to permeate the economy. Policymakers noted that while inflation has decreased since reaching a peak of 10.1% YoY in February, it remains high due to rising fresh food prices. Morocco’s annual inflation rate reduced to a one-year low of 7.1% in May from 7.8% in the previous month, and it is forecast to average 6.2% this year and 3.8% in 2024. Core inflation is forecast to follow a similar trajectory, decreasing from 6.6% in 2022 to 6.1% this year and to 2.9% in 2024.