Mauritius Interest Rate

The Bank of Mauritius trimmed its benchmark interest rate by 50 bps to 4% on September 20, 2024, from 4.5% previously, where it had been since December 2022. This marks the first rate reduction since April 2020, amid easing price pressures. The MPC stated that while growth remains consistent, the ongoing disinflationary process is well entrenched in 2024 and appears set to achieve the medium-term target of 3.5%, with upside risks to the inflation outlook subsiding. In its words, headline inflation fell from 11.3% in February 2023 to 4% in August 2024, marking 18 consecutive months of decline and remaining within the inflation target range of 2-5%. Core measures of inflation also remained engaged on a firm downward trend. Barring any further shocks, headline inflation is anticipated to reach around 4% by the end of 2024. Concerning economic activity, the Bank maintained its projection of real GDP growth at around 6.5% for the year.