Monetary policy decisions go through a formal process, according to a predetermined schedule:
Preparation of the monetary policy decision: The process is initiated by the launch of a review and analyses of key economic, monetary and financial indicators by the Bank's staff.The results of these analyzes are discussed at internal meetings and make it possible to identify the necessary assumptions for the forecasting of the main macroeconomic aggregates, in particular inflation and growth. Once the projections are developed, a preliminary version of the Monetary Policy Report (RPM) is prepared for discussion and adoption at the pre-CMF meeting.
All these works are included in a version of the Monetary Policy Report (RPM), which is submitted to members of the Monetary and Financial Committee (MFC) for review.
Monetary policy decision-making: After taking into account all the remarks made by the MFC, the RPM is submitted to members of the Bank's Board for decision-making purposes. This document may be accompanied by other studies that address some aspects deemed useful for the monetary policy decision.
|PREPARATION, DECISION-MAKING AND IMPLEMENTATION PROCESS OF MONETARY POLICY|
Implementation of monetary policy: The Bank staff implements the decisions and orientations of the Bank Board, in accordance with the operational framework for conducting monetary policy. The objective is to ensure the steering and smooth functioning of the interbank market through injection and liquidity withdrawal operations, through which Bank Al-Maghrib aims to ensure the fine-tuning of liquidity and keep the weighted average rate very close to the policy rate, an operational target for monetary policy. Keeping this target under control is thus the first step in the transmission of monetary policy decisions to other interest rates and therefore to credit.