Morocco Cuts Rates to Record Low to Cushion Economy From Virus

(Bloomberg) --

Morocco made its second-straight interest rate cut of 2020, pumping more stimulus into the tourism-reliant economy as it gradually emerges from a three-month lockdown.

The benchmark rate was reduced by 50 basis points to a record low 1.5%, the central bank said Tuesday in a statement. It extends an easing cycle that began in March, when the institution cut 25 basis points in its first rate reduction in four years.

The North African kingdom is slowly reopening its economy after grounding flights and closing cafes, restaurants and even mosques in March. The lockdown, combined with an acute drought, has left the country facing its weakest economic growth in a generation.

• Bank also removes reserve requirements for lenders
• Revises inflation forecast for 2020 to around 1% from 0.7%

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