Morocco’s central bank will hold its second meeting this year on June 21 to take key monetary policy decisions with analysts predicting the bank to increase key borrowing rates to mitigate the impact of imported inflation. The US federal reserve has swapped its quantitative easing with quantitative tightening hiking rates to control inflation. The European Central Bank followed suit with the first rate increase in ten years. The specter of stagflation is now haunting the Moroccan economy like other emerging markets suffering from inflation and low growth rates. The central bank is therefore before a delicate balancing act between maintaining an accommodative monetary policy to spur growth or hiking rates to control inflation.

Source: The North Africa Journal June 14, 2022 14:08 UTC