Mauritius Holds Key Rate at 4.5%

The Central Bank of Mauritius left its key repo rate unchanged at 4.5% on May 7th, 2025, keeping borrowing costs at their highest level since August 2024.

The decision was unanimous, with policymakers noting that headline inflation had eased to 2.5% in March, the lowest since June 2021.

However, inflation is expected to increase in the months ahead, with the Bank now forecasting year-end inflation at 3.5%, but still down from an earlier estimate of 3.7%.

The bank stressed that the inflation outlook remains subject to both external and domestic influences.

Meanwhile, early data point to a slowdown in GDP growth during the first quarter of 2025.