Reform Party leader warns Mauritius rate rise will squeeze household budgets
Roshi Bhadain says the central bank's hike from 4.75% to 5% will add to borrowing costs as inflation reached 6.4% last month.
The Monetary Policy Committee raised the key interest rate from 4.75% to 5% in the course of this week to contain inflation, which reached 6.4% last month, according to the bank's announcement.
Roshi Bhadain, leader of the Reform Party, said in a video posted on Friday to his Facebook page that the increase would raise the repayments of households with bank loans or credit purchases. Citing figures he attributes to Statistics Mauritius, he said household debt already exceeded Rs 220 billion in September 2026, and that one household in two is in debt.
He also argued that the previous increase, from 4.50% to 4.75% in May, did not produce the expected results, and that the new rise will not solve the inflation problem. He said the decision should not have been taken at this stage.
Why it mattersHouseholds carrying bank loans or credit purchases will pay more on their repayments after the central bank raised its benchmark rate to 5%.