Mauritius Keeps Key Policy Rate at 4.75%

2026-08-12 12:23 By Luisa Carvalho 1 min. read

The Central Bank of Mauritius unanimously decided to leave its key repo rate steady at 4.75% on August 12, 2026, after raising it by 25 bps in May.

Policymakers said the cautious stance reflects a highly uncertain environment, allowing the MPC to assess incoming data, inflation and growth risks, and the impact of previous measures.

Headline inflation rose to 4.4% in July from 3.7% in June, while core inflation remained elevated, with risks remaining tilted to the upside.

Still, the Bank lowered its 2026 inflation forecast to around 5% from 5.5%, reflecting recent inflation trends and budget measures, including additional subsidies on selected staple goods.

Meanwhile, it noted that economic activity slowed in Q1 but remained resilient, supported by tourism and financial services.

Growth is forecast at 2.8% in 2026, unchanged from May, with downside risks from geopolitical tensions, supply disruptions and weaker demand.



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Mauritius Keeps Key Policy Rate at 4.75%
The Central Bank of Mauritius unanimously decided to leave its key repo rate steady at 4.75% on August 12, 2026, after raising it by 25 bps in May. Policymakers said the cautious stance reflects a highly uncertain environment, allowing the MPC to assess incoming data, inflation and growth risks, and the impact of previous measures. Headline inflation rose to 4.4% in July from 3.7% in June, while core inflation remained elevated, with risks remaining tilted to the upside. Still, the Bank lowered its 2026 inflation forecast to around 5% from 5.5%, reflecting recent inflation trends and budget measures, including additional subsidies on selected staple goods. Meanwhile, it noted that economic activity slowed in Q1 but remained resilient, supported by tourism and financial services. Growth is forecast at 2.8% in 2026, unchanged from May, with downside risks from geopolitical tensions, supply disruptions and weaker demand.
2026-08-12
Bank of Mauritius Raises Key Rate to 4.75%
The Central Bank of Mauritius raised its key repo rate by 25 basis points to 4.75% during its May 2026 meeting, pushing borrowing costs to the highest level since 2013, citing economic uncertainty. Headline inflation accelerated to 3.6% in April 2026 from 2.7%, although still within the 2–5% target range. Inflation is expected to climb above 5% if the Middle East conflict persists, amid fuel price hikes which threaten the central banks forecast of 3.6% average by year-end. Domestic economic activity has remained resilient despite slowing to 2.7% in the final quarter of 2025. Growth is nevertheless expected to moderate in 2026. Assuming the conflict is resolved by mid-2026, real GDP growth is projected to ease to 2.8%, down from the previous forecast of 3.3%. Governor Thakoor stated that future policy decisions will remain prudent, guided by inflation trends, the growth outlook, and broader economic developments.
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The Central Bank of Mauritius unanimously decided to keep its key repo rate steady at 4.5% for the fourth consecutive meeting on February 11, 2026. The Committee said a cautious, wait-and-see approach remains appropriate, emphasizing the need to anchor medium-term inflation expectations amid ongoing economic uncertainties. The Bank noted that headline inflation rose slightly to 3.8% in January 2026, from 3.7% in December, but is expected to average 3.6% for the year, within the 2–5% target range and very close to the mid-point medium-term target of 3.5%. Meanwhile, domestic economic activity continues to be supported by services, namely tourism and financial services, while pending infrastructure projects are expected to boost construction and investment. Real GDP is projected at 3.3% in 2026, potentially rising to around 3.5% if capital projects accelerate and the African Growth and Opportunity Act is renewed.
2026-02-11