Mauritius Interest Rate

The Central Bank of Mauritius unanimously decided to raise the key repo rate by 50 bps to 4.5% on February 4th,2025, pushing borrowing costs to the highest since August 2024. The MPC stated that its goal is to ensure inflation expectations are firmly anchored while also containing exchange rate pressures. Policymakers noted that while inflation reached 3.6% in December 2024, the inflation outlook carries upside risks both domestically and externally, including global supply chain disruptions, climate-related events, and high imported inflation. Domestically, inflation, particularly in services, remains elevated. The Bank projects inflation to end 2025 at 3.7%, slightly above the 3.5% medium-term target, though domestic inflation could surpass expectations if a global trade war unfolds. The economy is expected to see positive performances from key sectors like construction, financial services, tourism, and trade in 2025, with the Bank forecasting growth between 3.5% and 4.0%.