Port Louis, Dec 29 – Mauritius cannot rely on lower interest rates to stimulate economic growth as inflationary pressures remain persistent, the country’s newly appointed central bank governor said.
Priscilla Muthoora Thakoor, who assumed office in September, said the inflation outlook continues to face upside risks, largely stemming from external factors such as global commodity prices and imported cost pressures.
“The domestic inflation outlook remains subject to upside risks, primarily originating from external sources,” Thakoor said in an interview. She added that the Monetary Policy Committee would remain cautious in adjusting policy settings.
According to Thakoor, the central bank will maintain a data-driven and forward-looking approach when reviewing its monetary stance, signaling limited appetite for premature easing while price stability remains under pressure.
Mauritius has been grappling with stubborn inflation even as economic growth moderates, complicating efforts to balance support for activity with the need to anchor inflation expectations. Policymakers have increasingly emphasized the role of structural reforms, fiscal measures and productivity gains in supporting long-term growth, rather than relying solely on monetary policy.
