(Adds details on debt, banking system and comments) RABAT, Oct 13 (Reuters) - Morocco’s central bank left its benchmark interest rate at 1.5% on Wednesday, saying monetary policy was largely accommodative, amid the recovery of the economy from the repercussions of the COVID-19 pandemic. Inflation was expected to stand at 1.2% this year and 1.6% next year, from 0.7% in 2020, despite the impact of imported inflationary pressure, the bank said in a statement after its board meeting. The bank revised upwards this year’s growth forecast to 6.2% instead of an initial expectation of 5.8%, citing a rebound in agricultural output and progress in the rollout of the country’s COVID-19 vaccination campaign. Morocco has administered most doses in Africa, inoculating more than 50% of its population and has launched a third-dose programme. Assuming an average cereals harvest, Morocco’s economy would grow 3% next year, the bank said. Key to Morocco’s inflow of hard currency, travel receipts are expected to jump to 60.7 billion dirhams ($6.7 bln) next year, from 33.3 billion dirhams this year. That compares with 78.7 billion dirhams in 2019. Remittances from Moroccans abroad are seen increasing to 87 billion dirhams in 2021 and 82.7 billion dirhams in 2022. The inflow of hard currency through remittances created excess in hard currency that prompted the bank to buy $880 million from banks to ensure well-functioning of the local foreign exchange market, central bank governor Abdellatif Jouahri told reporters after the meeting. Imports, however, continue to outweigh exports despite a rise in phosphates and automotive sector sales. The current account deficit would widen to 2.5% of GDP this year, from 1.5% last year, the bank said. Morocco’s foreign exchange reserves would increase from 335 billion dirhams ($37 bln) this year to 345 billion dirhams in 2022, enough to cover 7 months of imports, the bank said, citing external financing to the treasury and the allocation of 10.8 billion under the IMF’s special drawing rights. The fiscal deficit would narrow from 7.6% of GDP in 2020, to 7.3% in 2021 and 6.8% in 2022, the bank said. Government debt would increase to 77.3% in 2021 and 79.5% in 2022. Bad loans ratio increased to 8.7% in August, the bank said. “These loans are well-provisioned,” governor of the central bank told reporters. “Now banks have collateral margins that exceed 400 billion dirhams,” he said. The central bank had asked banks not to distrubute 2020 dividends but he said the central bank will wait till the end of the year to allow profit destribution by well-performing banks “on a case by case basis.” Reporting by Ahmed Eljechtimi; Editing by Alex Richardson and Alistair Bell Our Standards: The Thomson Reuters Trust Principles.