Bank Al-Maghrib, Morocco's central bank, has decided to cancel its traditional press conference that was set to take place on September 22, following its quarterly council meeting. The bank cited the need to preserve institutional neutrality in the lead-up to the legislative elections as the reason for this cancellation. Despite this, the council meeting will proceed as planned.
Instead of a press conference, Bank Al-Maghrib will publish its monetary policy decisions and report through written communiqués. This will include the announcement of the director's rate. Journalists have been invited to submit their questions to the communication department via email or phone. The bank emphasizes its commitment to respecting democratic principles and maintaining neutrality by refraining from public statements during this period.
The decision marks a departure from the bank's usual practice. The wali's press conference was one of the few occasions when Bank Al-Maghrib publicly commented on the economic situation, growth prospects, and the state of the banking system. This change is significant as the September council meeting is when the bank updates its macroeconomic projections, including growth, inflation, external accounts, and public finances.
These projections have direct implications for the election campaign, particularly regarding the 2027 budget bill. The bank's growth projections are reportedly more conservative than those presented in the budget bill. The bank's decision to maintain silence during this period may be seen as an effort to avoid influencing the electoral debate.
Market analysts do not expect any significant changes in monetary policy. According to a survey by Attijari Global Research, 93% of 35 investors polled expect the director's rate to remain at 2.25%. A similar survey conducted by BKGR corroborates this expectation. However, the current economic situation presents a complex scenario, with domestic inflation under control but external pressures mounting.
The global economic environment has deteriorated, with oil prices exceeding $100 per barrel and a significant increase in the energy bill. In contrast, the US Federal Reserve has raised its interest rate by a quarter of a point in response to similar supply shocks. This divergence in monetary policy approaches highlights the challenges faced by Bank Al-Maghrib in its decision-making.
The cancellation of the press conference and the change in communication strategy reflect Bank Al-Maghrib's efforts to maintain its neutrality during the electoral period. By doing so, the bank aims to avoid any perception of influencing the political debate or taking a stance that could be seen as supporting specific political agendas.
Key points
- Bank Al-Maghrib has cancelled its traditional press conference ahead of legislative elections to maintain institutional neutrality.
- The bank will publish its monetary policy decisions and report through written communiqués instead of a press conference.
- Market analysts expect the director's rate to remain unchanged at 2.25%.
