Inflation Running Low, Interest Rate Remaining Unchanged

With Moroccan inflation coming in at 1.7% y-o-y in May, up from 0.9% in the previous month, we hold on to our forecast that price pressures will remain fairly subdued through 2010 and expect core inflation to reach 2.0% by end-2010. Given the mild growth in consumer price inflation and slowing economic growth, the central bank will probably maintain the loose policy rate.

To read the full article, please choose one of the following options: