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The Central Bank of Morocco (BAM) is struggling with creeping inflation, which is affecting mostly low-income people. To arrest the rising inflation, the Central Bank of Morocco raised the key bank rate by 50 basis points (half a percent) to keep it at 3 %
The Central Bank of Morocco (BAM) is struggling with creeping inflation, which is affecting mostly low-income people. To arrest the rising inflation, the Central Bank of Morocco raised the key bank rate by 50 basis points (half a percent) to keep it at 3 %. This was decided by the Board set up by the apex bank to advise it on key policy matters in a recent meeting. The bank had earlier raised the rates twice in September and December last year to stem inflation.
Commodities affected mostly by the impact of inflation include vegetables, fruits, and meats. The series of steps undertaken by the government is to ease the price spiral, which is refusing to get reined in. The government is keen that during the Holy Month of Ramadan, the prices should be put under a tight leash so that people can afford to buy essential things.
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The government has recently released inflation figures. According to that, the consumer price index rose by 1.7% in February. On a year-to-year basis, the rise was 10.1% over. The index of food products rose by (+20.1%). The apex bank expects inflation to stabilize at 5.5% in 2023, as against 6.6% in 2022. By 2024, the central bank’s forecast is that inflation will rule at 3.9%. The growth prospects of the country were also revised downwards by the apex bank. Its forecast now for 2023 is 2.6% and expects to grow at 3.5% in 2024 riding on the back of the pickup of the agricultural and fishing sector. These two sectors contribute nearly 12% of the GDP in 2020.
