Morocco

Morocco's central bank left its monetary policy rate at 2.25 percent, citing a positive reaction of financial markets and institutions to the introduction of a more flexible exchange rate system in January along with an improving economy and moderate inflation.

Morocco's central bank left its monetary policy rate at 2.25 percent, noting the downward trend in inflation had been reversed and inflation is expected to average 0.7 percent this year, down from 1.6 percent in 2016, but then rise in 2018 to average 1.5 percent and 1.6 percent in 2019.

Low capital buffers mean many Moroccan banks are susceptible to economic volatility, particularly in light of their weak asset quality and above-average risk appetite, Fitch Ratings says.

Morocco's central bank maintained its key monetary policy rate at 2.25 percent and raised its forecast for inflation and growth slightly this year due to improved domestic demand and a rise in imported inflation.