How morale increases work.

[Jumbie]

I notice that morale can't increase past 125% for a group. I'm assuming that the valor spell (10% increase for a battle) still works to raise morale to 135% for the duration of the battle?

Also, when a group gets a morale increase from extra gold, how soon does that increase take hold? Group consumption is fairly early in the order of events so I'm guessing the morale increases before any fighting takes place?

What about morale increases from being in friendly territory?

[Hawk_]

I notice that morale can't increase past 125% for a group. I'm assuming that the valor spell (10% increase for a battle) still works to raise morale to 135% for the duration of the battle?

Also, when a group gets a morale increase from extra gold, how soon does that increase take hold? Group consumption is fairly early in the order of events so I'm guessing the morale increases before any fighting takes place?

What about morale increases from being in friendly territory?

I do not think that limit applies to increases gained through combat.

I have in my hand a turn from game 397 where I had an army group with morale of 160% and another one with a morale of 145% on turn 24.

It is possible the rules have changed since then. But that is my experience.