A substantial majority of investors, 83%, anticipate that Morocco’s central bank, Bank Al-Maghrib (BAM), will reduce its benchmark interest rate by 25 basis points at its forthcoming policy meeting on September 24, 2023, based on a recent survey conducted by Attijari Global Research.
– The survey included 35 key players in Morocco’s financial markets, indicating a strong consensus for monetary easing.
– Only 8% of respondents predict a more significant cut of 50 basis points, while 9% believe that the central bank will maintain current rates.
This expectation aligns with a global trend where central banks are leaning towards looser monetary policies. The recent decision by the US Federal Reserve to decrease its interest rate by 50 basis points to 4.75% reflects a wider movement aimed at addressing slowing economic growth and rising unemployment.
– In June, BAM made a 25-basis-point cut, lowering the key rate to 2.75%, marking its first adjustment in over a year due to easing inflationary pressures.
The central bank’s decisions widely influence borrowing costs across the economy, where lower rates typically reduce credit expenses for both businesses and consumers.
– In terms of inflation, Morocco’s rate peaked at 6.6% in 2022 but has since eased to 6.1% in 2023 and has stabilized recently, which is boosting investor confidence.
