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Kiosk360. Inflation continues to soar in many countries. Here are the recommendations of the Bank for International Settlements (the Bank of Central Banks of the World), of which Bank Al-Maghrib is a part, to curb the crisis. This article is a press review of the newspaper Today Le Maroc.
While few central banks globally have followed the rise in key rates, as is the case in Morocco, international institutions want to mobilize more internationally to fight inflation, reports Today Morocco in its publication of this Tuesday, June 28.
“This is particularly the case for the Bank for International Settlements or the BIS which acts as a bank of central banks across the planet. A message, which has just been sent to the various central banks on an international scale, seems to invite them to review their monetary policy and probably increase the rates”, indicates the daily, explaining that this institution which is one of its members of the Fed Reserve of the United States, the ECB of the European Union, the Bank of France as well as Bank Al Maghrib (BAM) call for new measures against inflation.
In its latest report, the BIS calls on central banks to act decisively and without delay to ensure a return to low and stable inflation, while limiting the impact on growth and preserving financial stability. The BIS indicates that the global economy is at risk of entering a new era of high inflation. The same source also notes that the dangers of stagflation are significant, in an environment where continued disruptions from the pandemic, the war in Ukraine, soaring commodity prices and financial vulnerabilities are clouding the outlook.
It should be noted that the BIS asserts that the priority for central banks is to ensure a return to low and stable inflation. “As part of this, they should strive to minimize the impact on economic activity, thereby preserving financial stability. Operating such a soft landing has proven difficult in the past, and the starting conditions make the task difficult today”, underlines the Bank for International Settlements.
Today Morocco also notes that the BIS believes that improved macroprudential and monetary policy frameworks, as well as reduced dependence on energy, make a repeat of the stagflation of the 1970s unlikely, and also believes that the current environment of financial vulnerabilities could amplify any slowdown.
“Note that Bank Al Maghrib did not consider it appropriate during its last meeting to increase the key rate. Abdellatif Jouahri, wali of Bank Al-Maghrib (BAM), had declared that BAM continues to maintain the exceptional measures deployed during the health crisis so as not to slow down the recovery”, concludes Today Morocco.
By Ismail Benbaba