Parliament: Navin Ramgoolam Explains the Rising Interest Rates

On Friday, 21st February, the National Assembly was engulfed in a storm of fierce condemnation of the previous government’s economic policies, as Prime Minister Navin Ramgoolam delivered a damning response during a Private Notice Question (PNQ) session. The spotlight of the opposition leader’s inquiry was firmly fixed on the recent increase in the benchmark interest rate.

At a meeting of the Monetary Policy Committee on 4th February, the Bank of Mauritius made the pivotal decision to raise the interest rate by 50 basis points, elevating it from 4% to 4.5%.

The opposition leader pressed the Prime Minister on whether the government had thoroughly assessed the repercussions of this hike across various sectors of the economy.

Ramgoolam pointed an accusatory finger at the previous administration, highlighting their mismanagement of excess liquidity, which he deemed a significant catalyst fuelling inflation and consequently eroding the purchasing power of Mauritians.

The dramatic exchange in Parliament underscored the deep economic tensions and the urgent challenges facing the nation as a result of past governance.

Source: Defi Media