On 4 November 2022, the Monetary Policy Committee (MPC) of the Bank of Mauritius (BoM) announced its decision to raise the Key Repo Rate (KRR) by 75 basis points to 4.00% per annum following the recent decisions by the European Central Bank, the Federal Reserve Board, and the Bank of England to sharply raise their policy rates.

The BoM states maintaining inflation below a double-digit figure at 9.5% for 2022 as the main reason for this hike and envisions inflation to range between 5-6% for 2023. Real GDP growth is further forecast at above 7% for 2022 and 5% for 2023.

The MPC continues to monitor the situation closely and will meet in December to review the economic situation. We will endeavour to provide you with further updates, should there be any, on the KRR.

Access the full communique from the BoM here