At its last meeting which was held in September 2010, the Monetary Policy Committee (MPC) of the Bank of Mauritius unanimously decided to cut the Key Repo Rate by 100 basis points to 4.75 per cent. The main arguments put forward were that with inflation remaining subdued in the domestic market and given the weakening growth prospects in the country’s main export markets, substantial monetary easing was necessary to give further support to the ongoing economic restructuring and provide the opportunity for embarking on a major drive to improve productivity and national competitiveness.
