Monetary Policy: A Meeting Amidst Diverging Economic Views

In addition to ensuring the stability of the financial sector and regulating credit and foreign exchange operations, the Bank of Mauritius has two other mandates: to maintain price stability and to preserve the value of the rupee. These are indeed powerful mandates.

Technicians who have worked at the Ministry of Commerce will tell you: it is a true puzzle to regulate prices through subsidy mechanisms. Often, despite the efforts of the authorities...