Bank of Mauritius Raises Key Rate to 5%, Loans to Cost More
The Bank of Mauritius has lifted its key interest rate from 4.75% to 5% to curb inflation, a move that will raise borrowing costs for households and businesses.
The Bank of Mauritius raised its benchmark interest rate on Wednesday 11 November 2026, lifting it from 4.75 percent to 5 percent. The decision was taken by the Monetary Policy Committee, the body within the central bank responsible for setting the direction of interest rates in the country.
The move is designed to put the brakes on inflation, which has remained a concern for Mauritian households already feeling pressure on everyday costs. By raising the key rate, the Bank of Mauritius makes borrowing more expensive across the economy, which in theory slows spending and helps bring prices down over time.
For ordinary Mauritians, the immediate effect will be felt on bank loans. Home loans, personal loans and business credit lines are typically priced above the key rate, so lenders are expected to pass on at least part of the increase to borrowers. Anyone with a variable-rate mortgage or an outstanding personal loan could see their monthly repayments rise in the coming weeks.
The Creole headline circulating in local media, which translates roughly as "the entire population will be affected", reflects how widely this decision is expected to be felt. Unlike measures that target a specific sector, a rate change touches anyone who borrows money or holds savings with a bank.
There is a silver lining for savers. When lending rates go up, deposit rates often follow, meaning Mauritians keeping money in fixed-deposit or savings accounts may eventually earn a slightly better return.
Also making news on Wednesday was a contract worth Rs 19,000 per day that has sparked controversy, though full details of that story were not available at the time of publication.
What this means: If you have a home loan or any variable-rate debt in Mauritius, contact your bank to find out whether your repayments will increase and by how much. The quarter-point rise is relatively modest, but it signals that the Bank of Mauritius is prepared to tighten policy further if inflation does not ease.
Source: Le Defi Media
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Frequently Asked Questions
What is the Bank of Mauritius key rate and why does it matter?β
The key rate, also called the repo rate, is the benchmark interest rate set by the Bank of Mauritius. Commercial banks use it as a reference when pricing loans and deposits. When the Bank of Mauritius raises it, as it did on 11 November 2026 from 4.75% to 5%, borrowing costs for households and businesses typically increase.
Will my home loan repayments go up after the rate rise in Mauritius?β
If your home loan or personal loan is on a variable rate, your bank may increase your repayments following the Bank of Mauritius decision to raise the key rate to 5%. Fixed-rate borrowers will not be immediately affected. It is advisable to check directly with your lender, such as MCB, SBM or any other commercial bank operating in Mauritius.
Why did the Bank of Mauritius raise interest rates in November 2026?β
The Monetary Policy Committee of the Bank of Mauritius raised the key rate from 4.75% to 5% to curb inflation. Higher interest rates reduce the amount of money circulating in the economy by making borrowing more expensive, which over time helps slow the rise in prices.
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