Monetary policy and real estate asset prices in Morocco

Hassnae Hammou Ou Ali
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Hassnae Hammou Ou Ali: Bank Al-Maghrib

No 03-2025, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This study investigates the role of housing prices in the Moroccan economy and their response to monetary policy shocks. Using a Structural Vector Autoregression (SVAR) model, we explore the transmission mechanisms of monetary policy through various channels, including interest rates, credit availability, and consumer confidence. The analysis uses a comprehensive dataset spanning the period from 2006 to 2024, focusing on macroeconomic indicators, monetary policy instruments, and the Real Estate Asset Price Index (REPI). Empirical findings reveal that contractionary monetary policy leads to a delayed decline in housing prices, which may reflect structural rigidities in Morocco's real estate market. This study contributes to understanding the interplay between monetary policy and asset markets in emerging economies, providing insights for policymakers seeking to balance growth and stability objectives.

Keywords: Real estate prices; Monetary policy; Interest rate; transmission channels (search for similar items in EconPapers)
JEL-codes: C32 E40 E52 R32 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2025-02-03, Revised 2025-03-04
New Economics Papers: this item is included in nep-afr, nep-ara, nep-cba and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp03-2025

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