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RABAT, June 23 (Reuters) - Morocco's central bank held its benchmark interest rate steady at 2.25 percent on Tuesday, amid assessments that inflation is on track to meet its medium-term price stability target, supported by improved economic growth.

Following its quarterly meeting, the central bank announced that it expects the average inflation rate to reach 1.5 percent in 2026, before rising to 2.1 percent in 2027, after hovering around 0.8 percent during the past two years.

Growth is expected to accelerate to 5.2 percent this year, compared to 4.9 percent in 2025, supported by a recovery in agricultural production following heavy rains that ended a seven-year drought. Growth is projected to slow to 3.1 percent in 2027, assuming an average harvest.

Morocco’s current account deficit is expected to widen to 4 percent of GDP in 2026, compared with 2.4 percent in the previous year, mainly due to increased energy imports.

The central bank said the energy import bill is expected to rise 26 percent to 135 billion dirhams ($14 billion) this year, citing the impact of the conflict in the Middle East, before falling to 114.4 billion in 2027.

The central bank also predicted an increase in phosphate and fertilizer exports, remittances from expatriates abroad, as well as tourism revenues and foreign direct investment.

The central bank stated that foreign exchange reserves are expected to rise to 542 billion dirhams ($57 billion) by 2027, covering slightly more than six months of imports.