Middle East & Central Asia News
LAST UPDATE: June 25, 2025
Moroccan central bank holds benchmark interest rate at 2.25%
Bank Al‑Maghrib kept its key rate steady at 2.25%, viewing it as appropriate for its inflation forecast (~1% in 2025, ~1.8% in 2026). Growth is projected at ~4.6% in 2025, current account deficit stable at ~2% of GDP, and reserves now cover ~5.5 months of imports. Policymakers noted uncertainty from global trade, regional conflicts, and agriculture.
Insight
Morocco is maintaining a steady monetary stance amidst stable inflation and solid growth. The external stability and healthy reserves give it room to weather potential external shocks.
Tunisia’s public banks hold $2.3b in non-performing loans
Tunisia’s state-owned banks are carrying around $2.3 billion in non-performing loans—over one‑third of their assets. The high level of NPLs strains banking sector stability and limits credit supply amid broader economic pressures.
Insight
The banking sector’s weakness illustrates fiscal and structural fragility. Cleaning up the balance sheet through recapitalization and improved loan recovery is crucial to revive lending and support economic recovery.
