Mauritius central bank raises key rate to 5%

The Bank of Mauritius (BoM) has increased its key interest rate from 4.75% to 5%. The Monetary Policy Committee decided unanimously on November 11 to raise the rate by 25 basis points to curb inflation. This measure is intended to prevent inflation from remaining above the target range of 2% to 5%.

Inflation has risen, with the 12-month average increasing from 4% in July to 4.3% in October 2026. Annual inflation climbed from 4.4% to 6.4% over the same period. In October, 47% of consumer price index products showed price increases exceeding 5%, up from 33% in January. The BoM now forecasts average annual inflation of 4.7% in December 2026 and 5.5% in December 2027.

The central bank maintained its economic growth forecast at 3% for 2026 and 3.2% for 2027, driven by financial services, insurance, and tourism. However, it warned of potential negative impacts from prolonged geopolitical tensions in the Middle East on imports, foreign investment, and local consumption. The BoM stated it would remain vigilant and intervene if necessary.

Why it mattersBorrowers in Mauritius will face higher monthly loan repayments due to the central bank's decision to increase the key interest rate.

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