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 15 September 2023, it was unanimously agreed to maintain the Key Rate (KR) at 4.50%.
The MPC based their decision on the fact that Mauritius has exhibited strong signs of recovery since 2022 with the main pillars of the economy such as tourism, real estate/construction and financial services witnessing an upswing. In addition, unemployment rate continues to follow a downward trend. Core inflation has also been kept under control following the post-pandemic normalisation process that has been deployed by the BoM.
In addition, the recent decision taken by Standard & Poor to reaffirm the ‘Investment Grade’ status of Mauritius consolidates the country's position as the International Financial Centre of choice for Africa. On the other hand, the substantial upgrade by Moody’s of Mauritius’ Scorecard-indicated outcome to Baa1-Baa3 sends a strong signal that Mauritius is on the right track.
It will be recalled that the Key Rate has remained unchanged since January 2023.