The Bank of Mauritius (BoM) held its key rate at 4.75% at the Monetary Policy Committee (MPC) meeting in August 2026. A standstill decision reflecting a moderately slowing Mauritian economy, with full-year growth now projected at 2.8%.
The Signals Behind the Decision
BoM Governor Priscilla Muthoora Thakoor summed up the monetary equation: « balancing domestic activity that is slowing but remains resilient, against persistent upside risks to inflation ». In practice, Q1 2026 GDP growth came in at 2%, down from 3.4% a year earlier, while July's headline inflation reached 4% and core inflation 2 peaked at 6.2%.
Tourism: A Positive Counterbalance
Against this cautious macro backdrop, the tourism sector offers an optimistic note: arrivals grew by 2.1% over the first seven months of the year, and H1 tourism receipts surged 17.9% to Rs 55.9 billion. A performance that illustrates the successful repositioning of the Mauritius product towards European and Asian premium markets.
Unemployment and Public Debt: Points to Watch
The unemployment rate stood at 5.7% in Q1 2026. The BoM maintains a data-dependent approach and says it stands ready to adjust policy depending on the evolution of inflation, economic activity, and the global context — notably persistent supply chain tensions worldwide.
Why It Matters
A stable rate at 4.75% signals a BoM choosing prudence over stimulus. For Mauritian businesses and foreign investors, this means a controlled but not yet declining cost of credit. The inflation trajectory will be the trigger for any eventual monetary easing — one to watch in Q4 2026.
Source: Bank of Mauritius, allAfrica, Le Mauricien, Defimedia — August 2026