November 29, 2023

BoM: Key rate remains unchanged at 4.50%

At the meeting of the Monetary Policy Committee (MPC) of the Bank of Mauritius (BoM) held on 28 November 2023, it was unanimously agreed to maintain the Key Rate (KR) at 4.50%.


This decision was taken on the basis that the Mauritian economy exhibits strong signs of recovery notably: a declining unemployment rate, tourist arrivals nearing pre-pandemic levels (see our Travel & Connectivity section) and the current account deficit is projected to decrease to 5.6% in 2023 (2022: 11.5%).  In addition, the MPC has taken note that the foreign exchange market is regaining stability while investment flows from abroad are sustained, and the Gross Official International Reserves (GOIR) remain at a comfortable level at 10 months of imports cover.  Furthermore, the banking sector remains resilient with adequate capital and liquidity buffers.


The local inflation rate continues its downward trajectory with the easing of global commodity prices along with the normalisation of global supply chains.


Considering the current state of play, the MPC is of the opinion that a revision of the Key Rate is not required.  It will be recalled that the Key Rate has remained unchanged since January 2023.