The Monetary Policy Committee (MPC) of the Bank has announced its unanimous decision to maintain the Key Rate (KR) at 4.50% per annum.
Explaining its decision, the Bank of Mauritius said that despite the challenging economic landscape, “there are signs of a global economic recovery, as indicated by leading economic indicators like the Purchasing Managers Indices (PMIs).”
The domestic economy in Mauritius, it said, has gained momentum in 2022, with key sectors such as tourism, services, and manufacturing showing improvement. Labour market conditions have also improved, leading to a downward trend in unemployment.
Additionally, there has been sustained foreign direct investment in real estate, supporting global cross-border investment activities. The economy grew by 8.7% in 2022, and the recovery is expected to continue in 2023, it added.
“The recently announced budgetary measures are anticipated to boost consumption, investment, exports, and enhance the country’s competitiveness.”
The BoM also forecasts headline inflation to progressively decrease to around 6.8% in 2023, with the inflation target range of 2% to 5% expected to be reached in 2024.
Earlier, Economist Eric Ng had stated that it would be preferable for the committee not to meet simply to maintain the status quo.
“The MPC, which is supposed to convene quarterly, has not held a meeting in six months, sending a negative signal.”
Ng argued that a “proper” Central Bank should adhere to a more predictable schedule.
Source: Bank of Mauritius, Defi Media
