The Monetary Policy Committee (MPC) was established on 23 April 2007 pursuant to sections 54 and 55 of the Bank of Mauritius Act 2004 to formulate and determine the monetary policy to be conducted by the Bank and to maintain price stability, taking into account the orderly and balanced economic development of Mauritius. The first meeting was a non-interest rate setting meeting being held to discuss the organisation of the work of the Committee and to review the monetary policy framework and the economic situation in Mauritius. The first interest rate setting meeting was held on 30 June 2007 and the Key Repo Rate was raised by 75 basis points to 9.25 per cent with effect from 2 July 2007.
The composition of the MPC has changed since its inception and now comprises eight members, namely, the Governor and the two Deputy Governors of the Bank, two members appointed by the Prime Minister and three members appointed by the Minister of Finance and Economic Development. The MPC meets once every quarter, but stands ready to meet in between its regular meetings, if the need arises.
After every meeting of the MPC, the Bank publishes on the same day a communiqué that provides the gist of the monetary policy decision. A press conference is held by the Governor after each meeting to provide an assessment of the economic and financial conditions and outlook that motivated the monetary policy decision.
Since December 2011, the minutes of MPC meetings are released on the Bank’s website two weeks after the MPC meeting. The minutes contain information about global and domestic economic developments as well as an assessment of risks to the growth and inflation outlook. Moreover, the voting pattern of MPC members is also made public.