“Al-Maghrib Bank” is expected to raise the main interest rate today, Tuesday 24

Today, Tuesday, the Board of the Al-Maghrib Bank will hold its third quarterly meeting of the year, in anticipation of the decisions that the Board will make, and it is expected to raise the main interest rate to counteract the rise in inflation.

Maintaining or changing the same key interest rate is one of the decisions made by the Al-Maghrib Bank Board during its quarterly meetings The US Central Bank raised interest rates by 0.75 percent for the third consecutive time, in an attempt to control high prices.

Last week, the Commercial Research Center (AGR) expected an increase in the key interest rate for Bank Al-Maghrib, highlighting in its latest note “Weekly Hebdo Taux-Fixed income” that “the key interest rate in Morocco is remained stable throughout 2022 at 1.5 percent, which is equivalent to its lowest level.

Bank Al-Maghrib continued, just days before its third meeting on monetary policy in 2022, to regulate the money market through liquidity injections in order to maintain the stability of interbank interest rates at the level of the main interest rate. The center’s analysts explained that this decision was made after the acceleration of inflation and coincided with the rise in the main interest rates of the main international central banks.

Economy and Finance Minister Nadia Fattah Alaoui said on July 27, about a month after the last Al-Maghrib Bank Board meeting, that inflation in Morocco has risen to unprecedented levels in 28 years.

During her presentation to the parliamentarians, on the execution of the 2022 budget in the first six months of 2022, and the budget programming for the 2023-2025 triennium, the minister explained that the average level of inflation during the first semester of 2022 amounted to 5 .1 percent (7.8 percent food inflation and 3.4 percent non-food inflation).

The minister stated that the inflation rate went from 0.9 percent in the first half of last year to 5.1 percent in the same period this year, “as a result of the increase in food prices in 7, 8 percent instead of minus 0.1 percent last year.”