The Bank of Mauritius Monetary Policy Committee (MPC) unanimously held the Key Rate at 4.75% per annum, adopting a cautious stance as inflation eased but remained subject to upside risks while resilient economic growth faced downside risks. The rate had been held at 4.50% from August 2025 through February 2026 before a 25-basis-point increase in May. The MPC noted the transmission of that increase to saving and lending rates and reviewed ongoing open market operations. Headline inflation edged down to 4.0% in July, while underlying inflation remained elevated and persistent, and the central bank lowered its 2026 headline inflation forecast to around 5.0% due to inflation outcomes and recent subsidies. It maintained its 2026 growth forecast at 2.8%, supported by tourism and financial services, and said stress tests showed the banking sector remained resilient with adequate capital and liquidity buffers. Renewed Middle East tensions, risks to maritime routes, volatile energy prices and elevated freight costs continued to threaten global growth and inflation. The MPC said it would remain vigilant and data-dependent and stood ready to act between regular meetings if necessary.
Bank of Mauritius2026-08-12
Bank of Mauritius Holds Key Rate at 4.75%
The Bank of Mauritius Monetary Policy Committee unanimously held the Key Rate at 4.75% amid easing inflation, persistent upside inflation risks and downside risks to growth. It lowered its 2026 headline inflation forecast to around 5.0% and maintained its 2026 growth forecast at 2.8%.