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Mauritius Central Bank raises repo rate: You’ll pay more interest on loans

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Mauritius Central Bank raises repo rate: You'll pay more interest on loans

The Monetary Policy Committee (MPC) of the Bank of Mauritius, has raised the Key Repo Rate by 100 basis points to reach 4%.

The repo rate is the rate at which the Bank of Mauritius lends money to commercial banks. The rate is set by the Monetary Policy Committee (MPC) and is adjusted for the purpose of keeping inflation below the target limit.

When the repo rate increases, what does it mean for you? Interest rates on your debt/loans will increase.

In simple terms, if you have taken a home loan of Rs 3 million with a reimbursement period of 20 years, you will now be charged an extra Rs2,000 on your monthly repayments.

On the other hand, the interest rates on savings and investment products will increase too. 

The Bank forecasts inflation in the range of 5-6% for 2023. Growth rate is projected to remain strong at above 7% for 2022 and 5% for 2023.

Since the beginning of the year, the MPC has raised the KRR by 215 basis points cumulatively.

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The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.