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Morocco's Central Bank Deals with Interest Rate, Inflation and Liquidity


The Moroccan central bank kept its benchmark interest rate at 3.25 percent as lower commodity prices helped slow inflation, which Rabat-based bank expects to remain below 3 percent during the next 18 months, due to a dip in exports and global commodity prices.


"The impact of the unfavorable international economic situation is passing through to the national economy via the real transmission channels, mostly exports of goods and services, and remittances of Moroccans living abroad," the bank said in the statement, according to Bloomberg.

 

The central bank is also tightening its grip on liquidity. It lowered required reserve ratio to 10 percent starting July 1 since there is still a liquidity shortage on the money market.

 

While the Moroccan economy expanded 5.8 percent in 2008, it is predicted that growth will slow to 5.4 percent in 2009.


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