The Bank Al-Maghrib Board has decided to maintain the key interest rate at 2.75%. A decision with direct consequences on the cost of your loans. Here is what it means for you.
Bank Al-Maghrib's Decision
At its latest meeting, the Bank Al-Maghrib Board maintained the key rate at 2.75%, unchanged since March 2024. This stability reflects controlled inflation of around 2% and moderate economic growth.
The key rate is the rate at which commercial banks borrow from the central bank. It directly influences the rates offered to individuals and businesses.
Impact on Mortgage Lending
With a stable key rate, mortgage rates remain within the 3.5% to 5.5% range. Banks are maintaining attractive conditions to stimulate housing demand:
- ✓Average fixed rate: 4.2% over 20 years
- ✓Variable rate: 3.5% to 4.5% (indexed to the key rate)
- ✓Maximum term: 25 to 30 years depending on the bank
This is the ideal time to borrow at a fixed rate: rates are historically low and stable. If you are hesitating between fixed and variable, the fixed rate offers welcome certainty in the current environment.
Impact on Consumer Credit
Consumer loans are less directly linked to the key rate. Their rates remain between 6.5% and 12%, primarily influenced by competition and the borrower's risk profile. Finance companies (Wafasalaf, Cetelem, Salafin) regularly run promotional offers to attract customers.
What About Mourabaha?
Mourabaha product margins are also stable, ranging from 4.5% to 6.5%. Unlike a conventional loan, the Mourabaha margin is fixed at the time of signing and is not directly affected by changes in the key rate, which provides predictability that borrowers appreciate.
What Should You Do Now?
- ✔If you are planning to buy: conditions are favourable. Take advantage of low rates to borrow at a fixed rate.
- ✔If you have a variable rate: consider renegotiating to switch to a fixed rate before any potential rise.
- ✔If you are repaying an older loan: a loan consolidation could reduce your monthly payments.
- ✔In all cases: compare offers from several banks to secure the best rate.
Wafir Tip
Make the most of today's low rates to optimise your property project. Use our mortgage simulator to estimate your monthly payments, or calculate your borrowing capacity in a few clicks. Compare Moroccan bank offers on our mortgage page.
Frequently Asked Questions
What is Bank Al-Maghrib's key rate?
The key rate is the interest rate at which commercial banks borrow from the central bank (Bank Al-Maghrib). It serves as the benchmark for all interest rates in the Moroccan economy. When Bank Al-Maghrib changes its key rate, this directly affects the cost of credit for individuals and businesses.
How does the key rate affect mortgage loans?
The key rate directly influences mortgage rates, particularly variable rates that are indexed to it. A reduction in the key rate generally leads to a decrease in the rates offered by banks in the weeks that follow. Fixed rates are less directly affected but follow the same trend in the medium term.
Will the key rate fall?
Bank Al-Maghrib is currently holding its key rate at 2.75%. Forecasts depend on the evolution of inflation and economic growth. With inflation controlled at around 2%, some analysts anticipate stability or a slight cut by the end of 2025. The Bank Al-Maghrib Board meets four times a year to assess the situation.
What is the difference between the key rate and the bank lending rate?
The key rate is set by Bank Al-Maghrib and serves as a reference. The bank lending rate is the one each bank applies to its customers for loans. The lending rate incorporates the key rate plus a margin covering operating costs, credit risk and the bank's profit margin. This is why bank rates are always higher than the key rate.
How do you make the most of a low key rate?
A low key rate is the ideal time to borrow at a fixed rate to lock in favourable conditions for the full term of the loan. If you have a variable-rate loan, consider renegotiating to switch to a fixed rate. If you are repaying an older high-rate loan, refinancing could generate significant savings.
Sources and References
- 1. Bank Al-Maghrib — Morocco's central bank, monetary policy decisions and key rate
- 2. GPBM — Professional Group of Moroccan Banks — Statistics on credit rates and banking activity
- 3. HCP — High Commission for Planning — Macroeconomic data, inflation and growth in Morocco
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