The Monetary Policy Committee (MPC) of the Bank of Mauritius has decided to maintain the Key Rate at 4.50% per annum, a decision made unanimously during their recent meeting held on 3rd April 2024. This decision comes amidst signs of robust global and domestic economic conditions. Globally, the economy is showing resilience, supported by strong consumer and government spending, and the IMF forecasts a growth rate of 3.1% for 2024. Additionally, a faster than anticipated global disinflation process has influenced central banks towards a more dovish stance this year.
Domestically, Mauritius experienced a strong growth rate of 7.3% in the fourth quarter of 2023, driven by major infrastructural projects and an influx of tourists. The unemployment rate has also improved, dropping to 6.1%. The MPC expects this positive momentum to continue, with projections of a 6.5% growth in 2024. This optimism is supported by strong demand in the tourism sector, continued investments in infrastructure, and robust household and government spending.
Despite some volatility, such as increased year-on-year inflation in February 2024 due to fluctuating food prices, overall inflation is on a downward trend and is projected to stabilize at around 4.9% by the end of 2024. The MPC views the current monetary policy stance as effective in maintaining price stability and supporting orderly economic development, and it remains vigilant in monitoring global economic uncertainties.
It will be recalled that the Key Rate has remained unchanged since January 2023.

To access the statement issued by the BOM, please click here