BoM Holds Interest Rate Steady at 4.50%

The Monetary Policy Committee (MPC) of the Bank of Mauritius (BoM) has decided, with unanimous agreement, to maintain the interest rate at 4.50% at its meeting on Thursday, July 11. Governor Harvesh Seegolam explained the decision during a press conference.

The MPC members reviewed the current economic situation and assessed that, despite positive growth prospects, external risks could still emerge.

Additionally, while inflation prospects are positive, they may be exposed to risks of a rise mainly due to escalating global commercial costs.

After weighing these risks, the members concluded that no change to the interest rate was necessary at this stage.

In making this decision, the MPC took into account the country’s economic performance, which has been robust over the past year.

However, the committee also acknowledged that there are external uncertainties that could impact the economy, such as potential global economic shocks or changes in commodity prices.

The BoM has maintained its stance of keeping interest rates stable in recent months, despite rising inflation pressures.

The current interest rate of 4.50% is seen as a balance between supporting economic growth and maintaining price stability.

The decision to keep interest rates unchanged is likely to have a mixed impact on the economy.

On one hand, it will help to maintain consumer and business confidence, which could lead to increased spending and investment.

On the other hand, it may also mean that borrowing costs for consumers and businesses will remain relatively high, which could slow down economic growth.

Overall, the MPC’s decision is reflecting a cautious approach to monetary policy, taking into account both domestic and external factors that could impact the economy.

Source: l’Express