Morocco may soon find itself benefiting from a more accommodating monetary environment in Europe. The European Central Bank has just announced a fresh round of interest rate cuts, a move that could ease pressure on Morocco’s currency, lower the cost of borrowing abroad, and help relieve import-driven inflation.
Starting June 11, the ECB will trim its key interest rates by 25 basis points. The deposit rate will drop to 2%, the main refinancing rate will be set at 2.15%, and the marginal lending facility will decrease to 2.40%. This marks a policy shift amid ongoing global uncertainty, which continues to influence economic decisions both within the European Union and in countries closely tied to its economy—including Morocco.
The ECB cited an updated economic outlook as the main reason for the rate cut. Inflation across the eurozone has now moved closer to the ECB’s medium-term target of 2%. Current projections suggest average inflation will hold at 2% in 2025, dip slightly to 1.6% in 2026, and then return to 2% by 2027. As for core inflation, which strips out volatile elements like energy and food, the bank expects a 2.4% average next year, followed by 1.9% for both 2026 and 2027.
This latest cut is the eighth in just one year, underlining the ECB’s gradual shift toward looser monetary policy. The change has been enabled by what the bank views as improved transmission of its policy measures and a relatively steady grip on price stability.
The ECB’s Governing Council emphasized it will continue to tailor future decisions based on evolving economic data, taking a case-by-case approach rather than sticking to a rigid path. For Morocco, this climate could provide a measure of financial breathing room, especially as the country remains sensitive to economic swings among its major trading partners.
