The Bank of Mauritius (BoM) released a communiqué on 13 August 2025 further to a meeting held by the Monetary Policy Committee (MPC), where it was agreed to maintain the Key Repo Rate (KRR) at 4.50% per annum.

Global growth prospects have improved slightly, with the IMF projecting to 3% in 2025 and 3.1% in 2026, though risks remain on the downside. Global inflation, though easing, continues to exceed central banks’ targets, requiring cautious policy responses.

Domestically, GDP growth is expected at around 3% in 2025, supported by a rebound in tourism but tempered by fiscal consolidation and global uncertainty. Inflation rose to 3.1% in July, with annual inflation at 5.2%, though it is forecast to remain within the Bank’s 2–5% target range.

Financial conditions remain stable. The foreign exchange market is stabilising, with inflows up by USD 866 million compared to last year, and the banking sector remains resilient and well-positioned to withstand potential shocks.

Given the balance of risks and uncertainties, the MPC judged that holding the steady rate is the most prudent course of action to balance growth and inflation risks, maintain price stability and support economic development. The Committee remains ready to act outside scheduled meetings, if required.

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