After the quarterly meeting of its board of directors, the Moroccan Central Bank expected inflation, driven by food and fuel prices, to rise to 6.6 percent this year, before slowing to 3.9 percent in 2023.
The Moroccan Central Bank decided to raise the main interest rate by 50 basis points, to reach 2 percent, with the aim of avoiding any fixation on inflation expectations and ensuring conditions for a quick return to levels consistent with the goal of price stability.
The Central Bank also expected an increase in food and non-food prices, which indicates a continuation of inflation in 2023. The inflation rate in Morocco recorded 8.3 percent last September, the highest level ever since 1995 before it slowed again in October to record 8.1 percent.
Morocco expects the economy to achieve an optimistic growth rate between 3.1 percent and 4.5 percent, which takes into account the expected slowdown in the euro area - the main trading partner of the Kingdom of Morocco - and the change in the monetary policy cycle, in addition to the negative effects of high prices on household consumption.
Source (Al-Arabiya.net Website, Edited)
