MPC: Key Rate Decision Awaited on September 15

The 68th meeting of the Monetary Policy Committee is scheduled for September 15, three months after the last one held in June when the decision to maintain the Key Rate at 4.5% was made.

Originally slated for August, the committee’s upcoming meeting will assess the latest international and national developments that have occurred since then.

The unanimous decision for maintaining the status quo in June was driven by the encouraging economic recovery and positive performances in key economic sectors.

One significant factor impacting the Key Rate’s trajectory is inflation, as the Bank of Mauritius’ decision to raise its policy rate in 2022 played a pivotal role in anchoring medium-term inflation expectations in the country.

The committee had observed a decrease in inflation, with the overall rate dropping from 11.1% in January to 10% in July, and the year-on-year rate declining from 11.8% to 5.9% during the same period.

The Monetary Policy Committee also reviews alternative macrofinancial scenarios and assesses the risks to growth and inflation prospects before deliberating on the policy rate.

Source: Defi Media