At the end of the quarterly meeting of its board, the BAM “decided to raise the key rate by 50 basis points to 3% in order to prevent the outbreak of inflationary spirals”, according to a press release from the institution. .
The central bank had already raised its key rate during its two previous councils in September and December.
This new monetary tightening occurs in a context of strong inflationary pressure, a source of social unrest.
In recent weeks, soaring prices have been strongly criticized by opposition parties, unions and even in some local media.
“Recent data show that inflation continues to accelerate, notably under the effect of internal supply shocks on certain food products,” notes the BAM.
Vegetables, fruits and meats are particularly affected by increases.
Under pressure, the government, through the voice of Economy Minister Nadia Fettah Alaoui, promised that prices should “stabilize or fall” during the period of the holy month of Ramadan which opens this week.
According to figures from the High Commission for Planning (HCP), also published on Tuesday, the consumer price index rose 1.7% in February and 10.1% year on year, due to the rise in the index of food products (+20.1%).
The Central Bank now expects inflation to remain high at 5.5% in 2023, compared to 6.6% in 2022. It should drop to 3.9% in 2024.
As for economic growth, the BAM has revised its forecast for 2023 downwards to 2.6%, before a recovery to 3.5% in 2024.
The economy of the Maghreb country remains largely dependent on the agricultural and fishing sector, which still represented nearly 12% of GDP in 2020.