Mauritius Interest Rate

The Central Bank of Mauritius kept its key repo rate steady at 4.5% during its regular meeting on August 13th, 2025, leaving borrowing costs at their highest level since August 2024. Policymakers noted that, given the current global and domestic economic uncertainties, it was prudent to maintain the existing policy stance. While the recent rise in inflation appears temporary, medium-term risks from tariff-driven global inflation could be more persistent. Headline inflation rose for the fourth consecutive month to 3.1% in July 2025, largely reflecting the impact of budgetary measures, which include higher taxes on demerit goods and additional excise duties on vehicles. With one-off effects expected to ease, inflation should stay within the Bank’s 2–5% medium-term target, with headline inflation projected at 4.0% in 2025, up 0.5 percentage points from the prior 3.5% forecast. Domestic GDP growth for 2025 is now expected to settle near 3.0%, down from the earlier 3.0–3.5% forecast.