EXECUTIVE SUMMARY
BANK AL-MAGHRIB : INFLATION AS A NEW PRIORITY FOR 2023
For its last monetary policy meeting in 2022, Bank Al-Maghrib decides to raise its Key Rate by +50 BPS to 2.5% for the 2nd consecutive time. The Central Bank thus confirms the shift in its monetary policy that began last September.
Following the inflationary surge in Morocco which reached a 30-year high, i.e. above 8.0% in October, the institution is continuing its restrictive policy by prioritizing the support of price stability. Note that this increase of 50 BPS is in line with our survey carried out in December 2022 (Cf. Key Rate Survey Q4-22).
According to the latest BAM forecasts, economic activity has been revised slightly upwards in 2022E to 1.1% instead of 0.8% previously. In fact, the year 2022 was marked by a difficult international context, a weak crop of 34 MQx and an unprecedented acceleration of inflation. Under these conditions, BAM is revising its average inflation forecast upwards to 6.6% in 2022E against 6.3% previously.
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