Monetary Policy Committee: Rate Remained at 4.65%

The Monetary Policy Committee (MPC) held at its meeting this Monday, Feb. 3. The policy rate was kept at 4.65%. The Bank of Mauritius said that this decision was taken following a majority vote.

According to the MPC, the Mauritian economy has continued to show resilience and is close to potential growth at this time. However, there is an increase in the inflation rate YoY compared to August 2013, which could indicate a return of inflationary pressures.

The statement of the Bank of Mauritius reported differences on several points. Among other things, there has been disagreement about the need to raise the repo rate to improve national savings rate and solve the problem of excess liquidity. Finally, some members felt that inflationary pressures should not be a problem, but a premature tightening of monetary policy could endanger the country's economic recovery. Others indicated that inflationary threats have increased. 

" We welcome the decision of the MPC , "said Raj Makoond, Chairman of the Joint Economic Council . According to him, this decision sends a strong signal and shows that growth remains a priority in the current context. Commenting on the lack of unanimity in the decision of the MPC, he added that this shows that there are always two schools of thought.