Rabat – The Council of Bank Al-Maghrib (BAM), Morocco’s central bank, announced on Tuesday its decision to maintain the interest rates at 3%.
The council emphasized that the current rate is deemed appropriate, with the return of inflation to levels consistent with the goal of price stability.
A statement released by BAM following its quarterly meeting for 2023, which they held in Rabat today, highlighted the council’s assessment.
“The Council deemed the existing 3% key interest rate level to be suitable, supporting the resurgence of inflation to levels in line with the price stability objective,” the statement read.
Despite maintaining the status quo, the council underscored its commitment to vigilant monitoring of economic conditions and inflationary pressures, both domestically and internationally.
The decision reflects a cautious approach that acknowledges the need to adapt to evolving economic circumstances.
The statement further indicated that the council remains attuned to the economic landscape, ready to respond proactively to any shifts that may impact inflation and overall economic stability.
The decision to keep the key interest rate unchanged aligns with BAM’s strategy of balancing economic growth with inflation containment, added the statement.
Bank Al-Maghrib’s decision to keep its key interest rate steady at 3% aligns with the expectations of 96% of surveyed investors, as revealed by Attijari Global Research.
The survey, encompassing opinions from 35 influential figures in the Moroccan financial market, accurately anticipated the central bank’s commitment to stability amid economic uncertainties.
BAM’s move comes in the wake of a year of tight monetary policy to address inflation concerns.
Inflation, a key consideration for central banks globally, has shown signs of moderation in 2023. Bank Al-Maghrib expects inflation to average 6% this year, a decrease from 6.6% in 2022. The central bank also anticipates a decline to 2.6% in 2024, although still above the 2% target.
Source : MoroccoWorldNews