Swan Securities Forecasts Stable Key Interest Rate Until 2024

Swan Securities Ltd has issued a report on Mauritius’ banking sector, focusing on major banks MCB Group and SBM Group.

The report suggests that both banks are poised for a favourable financial year due to high interest rates and continued asset revaluation.

Swan Securities anticipates a short-term increase in the cost of funds, with the local Central Bank potentially adopting a more accommodative stance in 2024.

The report also emphasises stable loan quality and anticipates growth in rupee-denominated loans.

Swan Securities recommends buying MCB Group and SBM Holdings stocks, citing a significant discount to their fair values.

The report also highlights inflationary pressures and expects the key interest rate to remain stable until next year.

Swan Securities suggests that the Central Bank may cut interest rates earlier than anticipated, potentially influenced by global trends.

Source: Le Mauricien