New rate hike for the Central Bank of Morocco (BAM): at the end of the quarterly meeting of its board held on March 21, the BAM “decided to raise the key rate by 50 basis points to 3%, to prevent the triggering of inflationary spirals” which affect households modest and vulnerable.
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The rise in prices, in particular food, is causing this new monetary tightening in a context of strong inflationary pressure, a source of social discontent. Opposition parties, trade unions and even some local media have strongly criticized this galloping inflation.
“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.
Pression
Under pressure, the government, through the voice of Economy Minister Nadia Fettah Alaoui, promised that prices should “stabilize or fall” during the month sacred of Ramadan which begins this week.
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According to figures from the High Commission for Planning (HCP), also published on 21st March, the consumer price index increased by 1.7% in February and by 10.1% over one year, due to the rise the index of food products (+20.1%). The BAM now expects inflation to remain high at 5.5% in 2023, compared to 6.6% in 2022. It should return to 3.9% in 2024. As for economic growth, the BAM has revised its forecast for 2023, at 2.6%, before a recovery to 3.5% in 2024.
(with AFP)