At its meeting on 10 March 2020, the Monetary Policy Committee (MPC) of the Bank of Mauritius decided to slash the Key Repo Rate (KRR) by 50 basis points, bringing it down to 2.85% per annum. The Committee discussed economic and financial developments at the global and domestic levels to make their decision. Policymakers intend to support domestic activity as the coronavirus outbreak is expected to have a significant impact on consumer and business confidence, which can potentially dent domestic spending and investment. In this context, the bank revised down its growth projections to 2.6-2.8% in 2020 (previously seen at 4%). Meantime, the headline inflation forecast was set at 1.5% in 2020, as both headline and core inflation have remained low.

For more information about the KRR, please visit the BOM website