MAURITIUS · CENTRAL BANK
The Bank of Mauritius, the island nation’s central bank, raised its main interest rate to 5.00% from 4.75% on Wednesday 11 November. It is the second increase this year, as price pressures spread across the economy.
Mauritius is an Indian Ocean island whose financial sector and tourism drive its growth, so the move reaches investors, borrowers and travellers who deal in rupees. The Bank said timely action was needed to keep inflation from settling above its target range.
Key Facts
- What happened The Bank of Mauritius raised its Key Rate, its main policy rate, by 0.25 percentage points to 5.00% on Wednesday 11 November.
- The vote The central bank’s rate-setting committee voted unanimously; the previous rate was 4.75%.
- Why Annual inflation, against a year earlier, reached 6.4% in October, up from 4.4% in July.
- Outlook The central bank sees average annual inflation at 5.5% in December 2027, above its 2% to 5% target.
- Next The minutes of the meeting are due on 25 November 2026.
What the Central Bank Decided
The Monetary Policy Committee, the central bank’s rate-setting panel, voted unanimously on Wednesday 11 November to lift the Key Rate by 25 basis points (a quarter of a percentage point) to 5.00% a year. The Bank said the decision was driven mainly by the risk of inflation settling above the upper end of its target range.
The committee judged that waiting would hurt households and businesses more later. It acknowledged that higher rates strain borrowers but said price stability and anchored expectations come first.
Why Prices Are Pushing Rates Up
Year-on-year inflation, which compares prices with the same month a year earlier, accelerated from 4.4% in July to 6.4% in October, the Bank said. Its headline measure, a 12-month moving average, rose more slowly, from 4.0% to 4.3% over the same period.
The share of items in the consumer price basket rising by more than 5% climbed from 33% in January to 47% in October. The share with falling prices almost halved, from 23% to 12%.
The Bank projects headline inflation at 4.7% in December 2026 and 5.5% in December 2027, which would put it above its 2% to 5% target range next year. One-year inflation expectations stood at 4.9% and five-year expectations at 5.0% in the Bank’s September survey, right at the ceiling of that range.
A Growing Economy With Risks
The economy grew 3.0% in the second quarter, up from 1.7% in the first, led by finance, insurance and tourism. Construction and manufacturing stayed weak, and the Bank forecasts growth of 3.0% for 2026 and 3.2% for 2027.
The Bank named the Middle East conflict, which has disrupted energy supply, and risks to key shipping routes, higher energy and food prices and an ongoing drought as upside risks to prices. A prolonged conflict would also weigh on exports, foreign investment and spending.
In May the Committee raised the rate to 4.75% from 4.50%, and in August it held it. The Bank describes its stance as data-dependent.
What It Means for You
Borrowers in Mauritius face higher borrowing costs, which the Bank itself acknowledged. For US investors with funds or holding companies based on the island, the move shows that the central bank is willing to tighten to defend price stability.
Travellers should note that the Bank forecasts higher consumer prices through 2027. Our guide to the Mauritian economy and the Mauritius explainer give the wider background.
What Is Not Known
The Bank has not said whether more increases are planned, only that it is data-dependent and ready to act between regular meetings. How far the Middle East conflict and the drought will push prices in 2027 is also open.
The Bank’s minutes on 25 November should show how the members weighed growth against inflation. For a comparison with another African central bank, see our report on Uganda’s rate hold.
Frequently Asked Questions
What is the Bank of Mauritius Key Rate now?
The Key Rate is 5.00% a year, after a 25 basis point increase on Wednesday 11 November 2026. It was 4.75% before the decision.
Why did the Bank of Mauritius raise rates?
The Bank said it wanted to stop inflation settling above its 2% to 5% target range. Year-on-year inflation reached 6.4% in October.
Was the decision unanimous?
Yes, the Monetary Policy Committee decided unanimously to raise the Key Rate by 25 basis points.
When are the minutes of the meeting published?
The Bank of Mauritius will publish the minutes of the 11 November meeting on 25 November 2026.
Sources: Bank of Mauritius, Key Rate raised by 25 basis points to 5.00 per cent per annum, 11 November 2026; The Monetary Policy Committee of the Bank of Mauritius raises the Key Rate by 25 basis points, 20 May 2026; Bank of Mauritius, Key Rate maintained at 4.75 per cent per annum, 12 August 2026.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.