Institutional Investors Anticipate Interest Rate Cut in Morocco
A recent survey conducted by BMCE Capital Global Research (BKGR) reveals that 63% of institutional investors expect Morocco’s central bank to reduce interest rates by 25 basis points during its quarterly meeting on June 24.
The survey indicates that this expectation is influenced by ongoing accommodative monetary policy from the European Central Bank, as well as a controlled monetary environment in Morocco, which necessitates substantial financing to support economic activity.
However, the central bank is expected to consider potential impacts, particularly regarding inflation and the armed conflict between Iran and Israel, in its analytical framework.
The upcoming Bank Al-Maghrib meeting occurs amid a globally volatile context, characterized by the protectionist fiscal policies of the United States and ongoing trade tensions with China, marked by sporadic negotiations between the two countries.
Additionally, the survey shows that 88% of investors view the current monetary policy as appropriate, and 75% anticipate two further interest rate cuts of 25 basis points each by 2025.
All survey participants (100%) believe it is unlikely that the central bank will raise interest rates in Morocco during 2025, especially if inflationary pressures resurface throughout the year.
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