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Morocco central bank must be wary of inflation - IMF

Fri 10 Aug 2007, 5:40 GMT
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WASHINGTON. (Reuters) - Moroccan inflation has slowed but its outlook remains uncertain and the central bank must be ready to tighten monetary policy if price pressures mount, the International Monetary Fund said on Thursday.

"As the future path of inflation is subject to risks, it calls for continued vigilance on the part of the central bank," the IMF said in a regular assessment of Morocco's economy.

"Resurgence of inflation would warrant a further tightening of monetary policy," it said.

The IMF also said there were no signs that the country's dirham currency was misaligned on foreign exchange markets.

Moroccan growth is forecast by the IMF slow to 2.5 percent in 2007 from 8 percent last year due to a slide in farm output following a poor harvest.

 
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