Wednesday, December 2, 2020
Home Economy BoM lowers Repo Rate by 50 points

BoM lowers Repo Rate by 50 points

The Monetary Policy Committee (MPC) of the Bank of Mauritius (Bank) unanimously voted to reduce the Key Repo Rate (KRR) by 50 basis points to 2.85 per cent per annum at its meeting on Tuesday 10 March 2020.

The MPC assessed latest international economic and financial developments and noted that the global economy is subject to heightened uncertainty and global financial markets are extremely volatile. The Committee considered that the OECD lowered its assessment of global growth for 2020 by half a percentage point to 2.4 per cent amid the COVID-19 outbreak. Downside risks to global growth have increased due to disruptions in global trade and travel activity. Global inflationary pressures are expected to remain subdued.

The COVID-19 outbreak is expected to have a significant impact on the domestic economy. The uncertainty associated with the outbreak of COVID-19 is also likely to influence consumer and business confidence, which can potentially dent domestic spending and investment. Bank staff estimates, at this stage, that considering the impact of COVID-19, real GDP growth rate would be between 2.6 to 2.8 per cent for 2020.

Both headline and core inflation have remained low. Bank staff is projecting headline inflation at about 1.5 per cent in 2020.

The MPC considered that an accommodative monetary policy was deemed appropriate to support domestic economic activity.

The next MPC meeting is scheduled on Wednesday 06 May 2020

admin is a news portal that aims to provide a fair reporting of events and balanced views. Our philosophy is to promote shared values like equality, justice and good governance.


Please enter your comment!
Please enter your name here

Most Popular

Mauritius Africa Fintech Hub celebrates 2nd anniversary

Whilst COVID-19 is impacting businesses with lockdowns and physical barriers caused by social distancing measures between stakeholders in the FinTech ecosystem, it is also...

Intercontinental Slavery Museum project launched

The first phase of the Intercontinental Slavery Museum (ISM) project, which envisions to be a ‘Site of Conscience’ devoted to a deeper understanding of...

World Walking Day: PM marches 7 km in St Pierre

Prime Minister Pravind Jugnauth participated in a 7-km walk in his constituency at St Pierre today. The event was organised in the context of...

Metro Express: PM effects site visit to see progress

60 % of the ongoing works along the corridor Rose-Hill-Quatre-Bornes in context of the forthcoming operation of the Metro Express Project, has been completed. The...

Recent Comments