02602cas a2200337 a 4500 AALejournalIMF022288 230101c9999 xx r poo 0 0eng d 5.00 USD 9781589067264 1018-5941 BD-DhAAL BD-DhAAL Queyranne, Maximilien. Morocco's Monetary Policy Transmission in the Wake of the COVID-19 Pandemic / Maximilien Queyranne, Daniel Baksa, Vassili Bazinas, Azhin Abdulkarim. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper finds that the neutral interest rate has been on a downward trajectory in Morocco since the global financial crisis and may have fallen in the wake of the pandemic. In that context, monetary policy transmission to output and prices appears relatively muted given limited exchange rate flexibility until recently. Also, monetary policy transmission to some market rates has somewhat weakened in the wake of the pandemic. A lower natural rate and low policy rates raise the question of whether further rate reductions would impair the banking system. We find that the sensitivity of cash demand to deposit rates is low, implying limited risks that banks would lose funding with further reductions. A reliance on checking and savings accounts for funding may impair monetary pass-through, however. If monetary policy reaches its effective lower bound, limited and credible recourse to an asset purchase program could usefully complement conventional measures and strengthen monetary policy transmission under an inflation-targeting regime with a flexible exchange rate. Mode of access: Internet IMF Working Papers imf Monetary Policy Transmission imf Monetary Policy, Central Banking, and the Supply of Money imf Monetary Policy, Neutral Interest Rate and Unconventional Monetary Policy imf Money and Interest Rates imf Abdulkarim, Azhin. Baksa, Daniel. Bazinas, Vassili. IMF Working Papers; Working Paper ; No. 2021/249 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/249/001.2021.issue-249-en.xml IMF e-Library