The Moroccan central bank has decided to raise interest rates by 50 basis points to 2.5 percent to curb inflation.
The central bank said in a statement following a meeting of its board of directors that the decision was made to “avoid fixing inflation expectations and help it return to rates in line with the goal of price stability.”
He explained that international conditions “remain characterized by the continuation of the crisis in Ukraine, geopolitical and economic division and the consequences of the pandemic.”
He added: “The future outlook for the global economy continues to deteriorate, with a strong slowdown expected in 2023. This circumstance casts a shadow on economic activity and the development of inflation, which is expected to remain high.”
The Central Bank of Morocco cut interest rates twice in 2020, the first time in March by 100 basis points to 2 percent, and the second in July of the same year by 50 basis points to 1.5 percent, and then raised it on September 27 by 50 basis points. . points.
The central bank also expects inflation at 6.6% in 2022 to ease to 3.9% in 2023 from 1.4% in 2021, the statement said.
The central bank expected the local economy to grow by about 1.1 percent this year and reach 3 percent in 2023.
Source: Moroccan media + agencies