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Significance

Akhannouch had been facing mounting popular criticism for failing to address Moroccans’ increasingly strident economic grievances. This had led to rumours that King Mohamed VI was on the verge of replacing him. The outstanding question, however, is how Morocco will pay for the package.

Impacts

High inflation could encourage the central bank to raise interest rates in the near future.

High inflation could also aggravate social tensions again, despite Akhannouch’s social package.

Rising energy prices may revitalise Morocco’s renewable energy targets.

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