The Board of Bank Al-Maghrib (BAM), meeting on December 20, decided to raise the key rate by 50 basis points (bps) to 2.50%.
"To prevent any de-anchoring of inflation expectations and promote the return of inflation to rates in line with the objective of price stability, the Council decided to raise the key rate by 50 basis points to 2.50%," BAM explained at the end of the 4th and final quarterly meeting, for the year 2022. The Central Bank indicates that it will continue to closely monitor the economic situation and inflationary pressures, both nationally and internationally.
According to BAM, economic growth is expected to slow down significantly to 1.1% in 2022, then accelerate to 3% in 2023. "After the rebound of 7.9% recorded in 2021, economic growth would mark, according to the updated projections of Bank Al-Maghrib, a sharp slowdown this year to 1.1%, the result of a decline of 15% in agricultural value added and a deceleration to 3.4% in the pace of non-agricultural activities," maintains the Central Bank. The same source indicates that in 2023, it would accelerate to 3%, driven by the increase of 7% in agricultural value added, assuming a return to average cereal production, adding that the growth of non-agricultural activities would decelerate to 2.4%, suffering in particular from the deterioration of the external environment. It is noted that in 2024, growth would be 3.2%, covering increases of 1.8% in agricultural value added, assuming average agricultural production, and 3.5% in that of non-agricultural activities.
Regarding inflation, Bank Al-Maghrib (BAM) expects an acceleration to 6.6% in 2022, before returning to 3.9% in 2023 and then to 4.2% in 2024. "Inflation should come out at 6.6% in 2022, after 1.4% in 2021, driven mainly by the acceleration in the rise in food prices and fuels and lubricants," BAM specifies. "Despite signs of its attenuation in some countries, inflation remains very high overall," notes BAM, noting that at the national level, this environment weighs on economic activity and on the evolution of inflation.
Source: www.challenge.ma, article from 12/20/2022
