The Monetary Policy Committee (MPC) of the Bank of Mauritius has unanimously decided to cut the Key Repo Rate by 40 basis points to 4.00 per cent per annum.
According to the press release issued by the Bank of Mauritius, the decision of reducing the key repo rate has been made on the back of a subdued global growth and commodity prices and global inflation risks are also expected to remain low in the near to medium term.
Since the last MPC meeting, domestic inflation has remained low against the backdrop of moderate international commodity prices, weak global economic activity and muted domestic demand. Headline inflation retreated from 1.3 per cent in January 2016 to 0.9 per cent in June 2016, while year-on-year inflation rose from 0.4 per cent to 1.1 per cent over the same period. The various core inflation indicators also remained at relatively low levels. Headline inflation is projected at around 1.5 per cent for 2016 and around 3.0 per cent in 2017, slightly lower than what was anticipated at the February 2016 MPC meeting.
Source: Bank of Mauritius