RABAT, March 17 (Xinhua) -- Morocco's central bank, Bank Al-Maghrib, on Tuesday decided to keep its benchmark interest rate unchanged at 2.25 percent following its first quarterly meeting of 2026.

The bank said that it will continue to closely monitor domestic and external conditions, particularly developments in the Middle East and their potential impact on economic activity.

It projected economic growth to improve markedly, reaching 4.8 percent in 2025 and 5.6 percent in 2026, up from 3.8 percent in 2024.

The forecasts are underpinned by an expected wheat harvest of 8.2 million tons in 2026, which would drive a 14.4-percent rebound in agricultural value added.

Non-agricultural activities are expected to remain robust, growing at around 4.5 percent.

The recovery is largely attributed to exceptional rainfall. Since Sept. 1, 2025, Morocco has recorded 470 mm of precipitation, a 134-percent increase year-on-year.

The central bank also projected the current account deficit to narrow slightly to 3.5 percent of GDP in 2026, down from 3.6 percent in 2025.

Foreign exchange reserves are expected to rise to 482.1 billion dirhams (about 51 billion U.S. dollars), up from 418 billion dirhams in 2025, covering 5.5 months of imports. ■