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# [MAURITIUS] Bank of Mauritius Raises Key Rate to 4.75% and Cuts Growth Forecast
- URL: https://businessoi.media/en/maurice-la-banque-de-maurice-releve-son-taux-directeur-a-4-75-et-revise-la-croissance-a-la-baisse-en/
- Published: 2026-10-10T02:49:30.000Z
- Updated: 2026-10-10T02:49:30.000Z
- Description: The Bank of Mauritius raised its key rate to 4.75% in May 2026, the first increase in over a year, as inflation is projected at 5.5%. Growth forecast is cut to 2.8% for 2026.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Économie, finance, Revue matinale, #en

**The Bank of Mauritius raised its key rate by 25 basis points in May 2026, taking it from 4.50% to 4.75%** — the first increase in more than a year. This monetary tightening comes amid rising inflationary pressures and geopolitical uncertainty, notably linked to tensions in Iran and their knock-on effects on energy markets.

## Imported inflation: the cascade effect

The central bank expects average inflation of around **5.5% in 2026** in its central scenario. In adverse scenarios, this pressure could be stronger and last longer. The inflation is described as "imported": rising energy prices cascade into transport, utilities, processed food and personal services. Mauritian households are already feeling a squeeze on purchasing power from higher fuel and electricity costs.

## Growth cut to 2.8% from 3.3–3.5%

The direct consequence of this inflationary shock is a downward revision of the growth outlook. The Bank of Mauritius now forecasts **2.8% growth in 2026**, down from the 3.3–3.5% range expected at the start of the year. Tourism is under particular scrutiny: a slowdown in arrivals is weighing on one of the Mauritian economy's strongest pillars.

The rate had been stable at 4.50% since February 2025\. The decision to raise it reflects a determination to anchor inflation expectations and send a vigilance signal to markets.

## Why it matters

For investors and companies operating from Mauritius — the Indian Ocean's financial hub — a higher key rate means higher credit costs and a clear message: the central bank's priority is now inflation control before growth support. A difficult trade-off in an unstable global environment.

*Sources: Bank of Mauritius (bom.mu), CNBC Africa, Trading Economics, PropertyCloud Mauritius, May 2026.*