Morocco Defies Global Trend to Hold Rate Despite Inflation Surge

Morocco held its benchmark interest rate at an all-time low of 1.5% to encourage borrowing and boost the economy even as the kingdom faces its highest inflation since the 1980s.

The decision, announced Tuesday in a statement from the central bank, was in line with expectations. It marked the eighth consecutive time the regulator held rates at a quarterly meeting after a 2020 easing cycle that sought to contain the economic impact of the pandemic.