RABAT (Reuters) - Morocco's central bank cut its benchmark interest rate by 25 basis points to 2.75 percent on Tuesday, in an effort to boost growth after a drop in agricultural output, the bank said in a statement. The bank said the Moroccan economy is expected to grow 2.5 pct in 2014, with non-agricultural gross domestic product rising around 3 pct and agriculture declining by 2.5 pct. Morocco expects a cereal harvest this year of 6.7 million tonnes, including 3.7 million tonnes of soft wheat, down from 9.7 million tonnes in 2013. "Inflation is expected at 0.7 percent in 2014, 1.6 percent on average over the next six quarters" the bank said. Today's cut was the first in more than two years. The bank lowered the benchmark rate by 25 basis points in 2012, for largely the same reasons. The North African country is trying to reform its finances to meet the requirements of international lenders, mainly the International Monetary Fund and the World Bank. It has ended subsidies of gasoline and fuel oil and started to cut diesel subsidies as part of its drive to repair public finances. It also reviewed the water and electricity pricing system this month. Last July, the IMF agreed to provide the North African kingdom a $5 billion credit line to help it pursue its reforms, replacing a $6.2 billion line that expires this month. The Moroccan current account deficit is now expected to shrink to 6.7 percent of GDP in 2014 from 7.6 percent in 2013, as imports decrease and exports increase. Foreign reserves stood at 175.6 billion dirhams at the end of August, or four months and 29 days of import needs, the bank said. They are expected to remain at that level through the end of 2014, it said. The bank expects the budget deficit to match the government's target of 4.9 pct of GDP.