June 29, 2023

BoM leaves Key Rate unchanged at 4.50%

At the meeting of the Monetary Policy Committee (MPC) held on 15 June 2023, it was unanimously agreed to keep the Key Rate (KR) at 4.5%.


It will be recalled that the KR has been unchanged since January 2023.


Despite a difficult global economic landscape, a marked improvement has been noted in the global economic activity. The easing of inflationary pressures achieved as a result of tightening measures adopted by central banks worldwide and a drop in shipping costs and commodity prices, have provided economies with breathing room.


On the local front, it is noted that the economy gained traction in 2022 following pick-up in key sectors such as tourism, services and manufacturing which led to a much-needed improvement in the unemployment rate. The economy expanded by 8.7% in 2022 and the recovery process is expected to continue in 2023. Given that Mauritius is also experiencing reduced inflationary pressures which is expected to further decline in the next coming year and taking into account the latest developments on the macro financial landscape, the MPC opined that a further increase in the KR was not necessary for now.