Lhe Kingdom is not going through a period of stagflation, “on the contrary, we are in a phase of inflationary pressure which is confirmed”, explained Jouahri during a press briefing following the first BAM Board meeting of 2022.
Inflationary pressure is felt, whether in developed or emerging countries, he added, highlighting the upward trajectory of inflation which rose from 1.4% in 2021 to a expected rate of 4.7% in 2022.
The year 2022 is marked by imported inflation, he observed, considering it necessary to carry out a more frequent update of the consumer price index (CPI) in this situation.
In addition, the Wali of Bank Al-Maghrib explained the maintenance of an accommodating monetary policy by sluggish economic growth which slowed down, following the decline in agricultural value added. Maintaining the key rate at 1.5% is also motivated by the expected return of inflation to moderate levels in 2023, he noted.
Given the uncertainties surrounding the geopolitical developments related to the situation in Ukraine and their possible implications at the international and national levels, Jouahri underlined that the Central Bank will continue to closely monitor the evolution of the economic and financial situation and will regularly update its forecasts and analyses.
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