On 3 June 2022, the Monetary Policy Committee (MPC) of the Bank of Mauritius (BoM) announced its decision to raise the Key Repo Rate (KRR) by 25 basis points to 2.25% per annum. We recall the increase of the KRR by 15 basis points to 2.00% per annum earlier this year, in March 2022.

The reopening of the Mauritian borders combined with the adoption of appropriate policy actions have maintained Mauritius on a steady path to recovery, and the BoM is forecasting real GDP growth between 7 – 8% for 2022 depending, among others, on the number of tourist arrivals.

On the other hand, the war between Russia and Ukraine has sent a wave of inflation across the world, and Mauritius was not spared from the consequences with rising fuel and commodity prices. This has led the BoM to further revise its inflation projection to around 6.7% for 2022.

Faced with increased risk of inflation, and with a view of implementing the appropriate macroeconomic conditions for recovery, the MPC has deemed raising the KRR to 2.25% per annum appropriate for our economy. It continues to monitor the situation closely.

Access the full communique from the BoM here