BOM: MPC keeps Key Rate unchanged at 4.5%
BOM: MPC keeps Key Rate unchanged at 4.5%
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The Monetary Policy Committee (MPC) of the Bank of Mauritius (BOM) was convened on the 11 July 2024, and during which it was unanimously decided that the Key Rate (KR) will be maintained at 4.5%. It will be noted that the KR remained unchanged since January 2023.
Against a global economic backdrop that remains resilient despite ongoing geopolitical tensions, the domestic economy has sustained its growth momentum, expanding by 6.4 % in Q1 2024 mainly due bricks-and-mortar projects and increased household spending. Economic growth is expected to remain high on the cards as the government continues its efforts in the consolidation and promotion of the financial services sector while the tourism sector improves on its performance and contribution to the GBP of the country. Real GDP growth is projected to be around 6.5% for the year.
Gross international reserves of the BOM stood at USD 8.2 billion as of June 2024, representing 12.9 months of import cover. Headline inflation neared 4.5% in June 2024 and is expected to continue on its downward trajectory in the second half of the year. All things considered, the MPC was of the opinion that the KR need not be revised.