Monetary Policy Committee (MPC) Maintains Key Rate at 4.5%

The members of the Monetary Policy Committee (MPC) have opted for a status quo, keeping the Key Rate at 4.50%. 

This marks the second meeting of the year, and according to Governor Harvesh Seegoolam, the decision was unanimous. The committee considered various macro-financial scenarios and assessed the risks facing growth and inflation prospects.

The BoM announced that this decision comes as the global economic recovery continues, albeit at a slightly slower pace. Inflation is decreasing but remains high in many countries.

On the national front, Mauritius’ economy continues to grow robustly, supported by key sectors such as tourism, financial services, and construction. Unemployment is decreasing, and the banking sector remains strong. The Bank forecasts real GDP growth of 6.5% to 7.5% for 2023.

Inflation in Mauritius has declined for the sixth consecutive month in August 2023 and is expected to continue decreasing to around 7.0% by December 2023.

The Committee believes that the previous rate hikes continue to have their impact, and the current monetary policy supports economic recovery.

Source: Le Mauricien