POLICY CHANGE

The Bank of Mauritius reduced, with effect from 30 August 2001, the Lombard Rate by 25 basis points, from 12.00 per cent to 11.75 per cent, after a review of domestic monetary and economic developments and against a background of a general decline in international interest rates in response to weaker world economic activity.

It is also to be noted that the Bank effected a cut of 50 basis points in the Lombard Rate, from 12.50 per cent to 12.00 per cent on 30 May 2001.