Monday, March 28, 2011

Mauritius Central Bank Hikes Rate 50bps to 5.25%

The Bank of Mauritius raised its repo rate by 50 basis points to 5.25% from 4.75% due to rising inflation. Referring to a rising inflation rate the Bank said "In the light of this and the expected narrowing of the output gap, the MPC considered it important to start the process of normalizing the key policy rate,". Mauritius reported inflation of 6.8% in February, compared to the Bank's previous forecast that inflation will rise to 7% in June. The Bank expects the economy to grow 4.6% this year, having chalked up GDP growth of 4.4% in 2010.


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