The Monetary Policy Committee (MPC) of the Bank of Mauritius decided to keep the key repo rate (KRR) unchanged at 3.5%, at its meeting held on 28th February 2018.

This decision was taken after consideration of various elements. The MPC noted that although domestic inflation has gone up since its last meeting, the core measures of inflation had remained low. The Bank’s expects headline inflation to settle around 4.0 per cent in 2018 and 3.7 per cent in 2019.

The Committee also noted that the domestic economy grew by 3.6% in the third quarter of 2017, while 4.2% was registered for second quarter of the same year and 3.7% for the third quarter of 2016. This performance was supported by an increase in investment activity and relatively stable final consumption expenditure. The MPC expects the economic recovery to be sustained in 2018 and sets its baseline projection for real GDP growth at 4.0% for the year.