Key Rate at 4.75%: The BoM Takes a Tough Stance Against Inflation Risks

In an unexpected move, the Monetary Policy Committee of the Bank of Mauritius (BoM) has decided to raise the Key Rate by 25 basis points, increasing it from 4.50% to 4.75%. This surprise decision comes as most economic analysts were anticipating a status quo in monetary policy. However, according to BoM Governor Priscilla Muthoora Thakoor, this increase was necessary in light of rising inflation risks, particularly in a tense international context.