The opposition is demanding that the economy minister and the governor of the Al-Maghrib bank be summoned to parliament to discuss the implications of raising interest rates.
Opposition groups have demanded that Fattah al-Alawi, chairman of the House Committee on Finance and Economic Development, the minister of economy and finance, and the governor of Al-Maghrib Bank appear before the committee to discuss the implications of Al-Maghrib’s decision to raise the main interest rate for the Moroccan economy and study the impact of this decision on consumption and domestic demand, as well as on the purchasing power of citizens in general.
And based on Article 45 of the Organic Law of the Al-Maghrib Bank, Idris Sentissi, head of the movement’s group, urged the Chairman of the House Finance Committee to invite the governor of the Al-Maghrib Bank to appear before the committee in order to study “the expected consequences of raising the main interest rate and the rates of the national banking sector in light of the bankruptcy of some foreign banks and the state of the national currency.
In a query addressed to the chair of the committee, the team stated: “The decision of the National Central Bank to raise the main interest rate raised a number of questions from participants about the expected impact of the increase in this rate, which was taken to reduce inflation. “.
The team emphasized that “the decision to raise the main interest rate now requires shedding light on it in terms of its impact on consumption, domestic demand, demand for real estate and consumer loans, equipment loans, etc., as well as examining the extent to which it is reflected in general, and on the purchasing power of citizens, and on the reduction of inflation, which is due to internal factors. more than external factors.
For its part, the Equity and Development Representative Group was also quick to summon Fattah and Al-Jawahiri to discuss the impact of inflation and interest rate hikes on the national economy.
The Bijidi group in the House of Representatives called for a meeting of the Committee on Finance and Economic Development in the presence of the Minister of Economy and Finance and the Wali of the Al-Maghrib Bank to discuss the impact of the continued rise in inflation as well as the increase in the interest rate on the national economy.
The group’s request comes amid a recent announcement issued at the Al-Maghrib board meeting on March 21, 2023, which spoke of continued high inflation and forecast inflation to average 5.5 percent through 2023. and its main component will be 6.2 percent, which is associated with a sharp increase in prices for some food products.
He relayed the group’s request, which had been sent by its president, Abdullah Boano, chairman of the Committee for Finance and Economic Development, based on the contents of a communiqué from the Board of Al-Maghrib Bank, which spoke of a programmed start of increased price subsidies. on products included in the clearing fund in 2024, which will help contain inflation. He predicted a high level of 3.9 percent, and also spoke of raising the main interest rate to 3 percent to avoid inflationary spirals.
Notably, Al-Maghrib’s board decided last Tuesday to raise its key interest rate by 50 basis points to 3 percent to “avoid sporadic inflationary cycles and enhance stabilization.” inflation expectations to help it return to levels consistent with the goal of price stability.”