Wednesday, March 28, 2012

Bank al-Maghrib of Morocco Cut Rate 25bps to 3.00%

The Bank al-Maghrib of Morocco cut its main policy rate by 25 basis points to 3.00% from 3.25% previously.  The Bank said: "In this context where economic activity has declined significantly, central inflation forecast is permanently consistent with the price stability objective and the balance of risks is skewed to the downside, the Board decided to reduce the key rate from 3.25 percent to 3 percent, while continuing to closely monitor all of these elements.."

Previously the Bank had held interest rates unchanged at its December meeting and September meeting last year; it had previously only changed its interest rate in March 2009 when it reduced the rate 25bps to 3.25%.  Morocco reported annual inflation of 0.5% in November, with -0.4% deflation in October, 0.8% in September, 2.2% in August, 1.8% in July and 0.7% in June.  The Moroccan Dirham (MAD) last traded around 8.37 against the US dollar.


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