The International Monetary Fund (IMF) urged Morocco's central bank on Wednesday to set an inflation target as pressures contributing to rising prices of goods and food commodities subside. The fund stated in a release marking the conclusion of its current mission in the country, "As inflation continues to decline, Bank of Morocco should resume its transition to a framework for setting an inflation target."
The central bank kept the benchmark interest rate unchanged at 3% during its last Board meeting in December, a stance that the IMF deemed appropriate. The fund urged the Rabat government to enhance its tax revenues to strengthen "the management of public finances" over the medium term while expanding access to social welfare programs.
It also anticipated increased job opportunities supported by reforms of state-owned enterprises, a greater role for the private sector in investment, efforts to combat corruption, and addressing practices that undermine competition. Annual inflation dropped to 6.1% last year, down from 6.6% in 2022, and the Bank of Morocco expects further decline to 2.4% this year, driven by falling prices of imported goods and greater stability in food markets.
