Morocco’s key interest rate, which the central bank has decided to maintain this Tuesday, will be reassessed this upcoming September, according to Abdelatif Jouahri, wali of Bank Al-Maghrib.
“We will reassess the situation, if the internal elements start to weigh significantly on the inflation trajectory,” as the Council may have a different reading on the développement of the economic situation, said the official in a press conference yesterday.
Out of 60 central banks, 27 have not raised their policy rates, specifies Jouahri, adding that “each bank acts according to the specificity of its situation.”
The official said that the Moroccan Treasury’s financing conditions did not drive the Board’s decision at all, although it was a factor on which the central bank bases many of its decisions, and takes it into account.
In regards to the international context, “there are discussions underway with the
banks to see how the market would react,” which will now depend on the risk premium of Morocco in the midst of current economic conditions.
However, Jouahri outlines the importance of upcoming payments for the Treasury’s debt, which may influence banks and investors’ readings for Morocco’s monetary policy.
“The LPL has not been used by the Treasury, said the BAM wali, adding that “it is an option that can be used if necessary.”
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