Mauritius raises key interest rate to 5%
The central bank's move on November 11 sparks public anger over the rising cost of living and increased loan burdens.
The Bank of Mauritius Monetary Policy Committee raised the key interest rate by 25 basis points on Wednesday, November 11, moving it from 4.75% to 5%. This decision has led to widespread criticism on social media, with many citizens expressing frustration over the escalating cost of living and the impact on their bank loans.
Governor Priscilla Muthoora Thakoor's announcement has drawn sharp reactions, with some social media users calling for her resignation. One user, S. M., stated that since her appointment, the only action has been to increase the repo rate, suggesting she does not understand the financial struggles of ordinary people. Another user, K. R., highlighted that individuals with Mutual Aid loans will see their repayment periods extend by five to 10 years due to the rate hike.
The rate increase, occurring two years after the general elections in November 2024, has been met with irony by some who recall electoral promises. Users questioned if this was the promised change, with one commenter sarcastically asking if this was the '60-0 gift' they received. The decision aims to curb inflation and encourage savings, but concerns remain about its effect on investment and the business climate.
Why it mattersIndividuals with bank loans, including those from Mutual Aid, will see their repayment periods extend by five to 10 years following the interest rate hike to 5% on November 11.