Central Bank’s Gov : Morocco’s Monetary Conditions Remain Largely Accommodating

“In recent months, given the acceleration of inflation, the Bank has increased its benchmark rate twice since last September. Certainly, these are tightening actions, but it should be noted that monetary conditions remain largely accommodating,” said the BAM Wali in his speech at the opening of a symposium organized by the Council for Development and Solidarity (CDS), on the theme “investment and the role of the territorial State.

He also said that with a policy rate of 2.5% at the end of 2022 and inflation at 6.6% on average over the year, interest rates are negative in real terms.

To ensure a better transmission of its decisions, Jouahri stressed that central bank ensures a close monitoring through a set of surveys and regular reporting, but also a permanent dialogue with the banking system, including through a meeting it holds once a half year with the presidents of banks, and a meeting held after each meeting of the Board between BAM and the general managers of banks.

In addition, he said that BAM monitors credit conditions through two quarterly reports, one on lending rates, the other on supply conditions and changes in demand, and ensures healthy competition between banks, in addition to the establishment of many guidelines in this direction, particularly on mobility and release, noting that the Central Bank is finalizing with the Professional Group of Banks of Morocco (GPBM) a comparator of tariff conditions for greater transparency.