Morocco's central bank keeps benchmark interest rate unchanged at 3 pct

Rabat (Reuters) - Morocco's central bank held its benchmark interest rate at 3 percent forecasting inflation would stay in line with its price stability objective in the medium term.

"After analyzing the impact of the new price indexation system of certain petroleum products and the announced accompanying measures, the Board took note of inflation projections which show a rate of 2.2 percent in 2013, 1.7 percent in 2014, 1.5 percent in the fourth quarter of 2014" the bank said in a statement.

Morocco's Islamist government raised energy prices to cut subsidies to meet International Monetary Fund (IMF) requirements.

The central bank, officially known as Bank al-Maghrib, has kept rates on hold since March 2012, when it cut them by 25 basis points to 3 percent.