The Monetary Policy Committee (MPC) of the Bank of Mauritius (BOM) was convened on 20 September 2024, and during which it was unanimously decided that the Key Rate (KR) will be reduced by 50 basis points to 4%.  It is noted that this is the first change made to the KR since December 2022, and it follows the disinflationary process of the country as well as it aligns to the decisions of both the US Fed and the European Central Bank (ECB) who have lowered their policy rates by 0.5% points and 0.25% respectively in September 2024.

On the local front, the GDP growth for the Q1 2024 stood at 6.4%, fueled mostly by bricks-and-mortar projects and increased household spending.  Tourism remains a key driver of the economy with increased influx of tourists.  The BOM maintains growth projections for Mauritius at 6.5% for the year 2024. On the other hand, inflation is on a downward trajectory, mainly due to declining prices of global food and fuel price as well as decreasing shipping cost. Headline inflation is projected to be around 4% by the end of 2024.