The Monetary Policy Committee of the Bank of Mauritius (BoM) held its key interest rate steady at 4.75% at its August 2026 meeting. A cautious decision amid slowing Q1 growth of 2%, still-elevated inflation, and a tourism sector delivering resilient receipts of 55.9 billion rupees.
A Monetary Hold Amid Mixed Signals
Governor Priscilla Muthoora Thakoor defended the hold: «activity slowing but remaining resilient, with upside risks to inflation.» Headline inflation edged down to 4% in July from 4.1% in June, but core inflation remains a concern, ranging between 5.1% and 6.2%. The BoM revised its 2026 inflation forecast down to approximately 5%, from the previous estimate of 5.5%.
2% Growth in Q1 and Solid Tourism
Real GDP expanded by only 2% in Q1 2026, well below the 3.4% recorded a year earlier. The BoM now projects 2.8% growth for full-year 2026. The slowdown is partially offset by a resilient tourism sector: arrivals grew 2.1% through July, with receipts reaching 55.9 billion rupees — a 17.9% increase year-on-year. Unemployment stood at 5.7% in Q1, with persistent skills mismatches in the labor market.
Three Key Risks Identified for Year-End
The BoM identifies three main risks to the Mauritian macroeconomic outlook: global geopolitical tensions, energy price volatility, and global supply chain disruptions. These factors could weigh on imports and dampen tourism. Monetary policy will remain data-dependent, with future decisions conditioned on inflation, economic activity, exchange rates, and the international environment.
Why This Matters
Maintaining the Mauritian benchmark rate at 4.75% sends a message of prudence to markets: Mauritius is not sacrificing price stability to boost short-term growth. For investors and businesses active in the Indian Ocean, this means stable short-term borrowing costs, a closely managed rupee, and an economy betting on quality — premium tourism, financial services — rather than volume.
Source: AllAfrica, Le Mauricien, Maurice Info, August 2026