Mauritius Launches Monetary Policy Committee

by Lorys Charalambous, Tax-News.com, Cyprus

02 May 2007

“Monetary policy has a fundamental role to play in the nation's development and the public should have a better insight of what monetary policy is, what it can do and what to expect from it'. So said Deputy Prime Minister and Minister of Finance and Economic Development, Rama Sithanen, at the launching of the Monetary Policy Committee (MPC) of the Bank of Mauritius last week.

According to the Deputy Prime Minister, the MPC will strengthen the capacity of the Bank of Mauritius for formulating monetary policy.

“The speculative attack that our currency suffered last year is a prominent example of the need for stronger mechanisms to identify and deal with problems on money and foreign exchange markets promptly,” Sithanen said, observing that more than 80 central banks make monetary policy by committee. He added that the MPC will be a "powerful forum to formulate the right solutions."

Sithanen further stated that monetary and fiscal policies must be coordinated and aligned on the same national economic goals.

The Governor of the Bank of Mauritius, Rundheersing Bheenick, noted that the launch of the MPC is part of the re-engineering process of the Central Bank and is a landmark move which marks a new era in monetary policymaking in Mauritius.

Bheenick said that the core focus of the strategy of the Bank of Mauritius is to improve the banking industry and financial services and bring them in line with best international standards and make them internationally competitive.

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