Mauritius Interest Rate2023 Data - 2006-2022 Historical - 2024 Forecast - Calendar

The Central Bank of Mauritius unanimously decided to raise its key repo rate by 50 basis points to 4.5% in December of 2022. It marks the fifth rate hike so far this year, bringing borrowing costs to the highest since October of 2015, with the aim to close yield differentials with other countries, contain FX volatility and inflation pressures, whilst not undermining growth. Policymakers argued that the normalization process should be pursued since the macroeconomic costs associated with inflation expectations, if not properly anchored, are high. Further, the MPC deliberated that the positive growth performance so far continues to provide leeway for a normalization to anchor inflation expectations and bring inflation in 2023 down to below 6% from 10.6% in 2022. The Bank kept its growth projections at above 7% for 2022 and at around 5% for 2023. The recovery process is well entrenched and broad-based, underpinned by greater dynamism across major sectors of the economy, including tourism.

The Central Bank of Mauritius unanimously decided to raise its key repo rate by 100 bps to 4% during a special meeting held on November 4th, 2022. It marks the fourth rate hike so far this year, bringing borrowing costs to the highest since August of 2017, to contain persistent inflationary pressures. The aim is also to close interest rate differentials whilst further containing excess volatility in the FX market. The Bank said it decided to speed up the normalization process in view of the proven economic recovery allowing greater room to maneuver and with the objective of maintaining inflation below a double-digit figure, at around 9.5% for 2022 and in the range of 5-6% for 2023. The annual inflation rate in Mauritius climbed for the third straight month to a near six-year high of 11.9% in September. Meanwhile, economic growth is projected to remain strong at above 7% for 2022 and 5% for 2023.

The Central Bank of Mauritius unanimously decided to raise its key repo rate by 75 bps to 3% during its September 2022 meeting. It marks the third rate hike this year, bringing borrowing costs to the highest since February of 2020, to contain strong inflationary pressures against a backdrop of global economic uncertainty. Policymakers noted that domestic remains at elevated levels largely reflecting supply-related factors, such as rising imported food and commodity prices. Headline inflation hit a 14-year high of 11.5% in August, from 11% in July. Accordingly, the Bank has revised upwards its inflation forecast to 10.6% for 2022 from 8.6% in June, with the trajectory largely conditional on the ongoing geopolitical tensions. The economy continued to recover in 2022Q1 and is estimated to have registered higher growth in 2022Q2, mainly boosted by the tourism sector. The growth estimate for 2022 remains at 7.4%, which lies within its previous projection range of 7-8%.