PORT LOUIS, April 27 Mauritius' annual average
inflation rate in 2013 is expected to fall below
the central bank forecast of 4.7 percent to 4.9 percent, Finance
Minister Xavier Duval said on Saturday.
The rate is expected at 4.5 percent or 4.6 percent this
year, Duval said, adding that the bigger concern is flagging
economic growth in the Indian Ocean island state.
Mauritius cut growth forecast from 3.7 percent to 3.5
percent last month, citing deeper contraction in the
"Macroeconomic priority should be given to growth as
inflation is less a problem. But we need to remain vigilant on
inflation," Duval told a news conference.
He said inflation was largely under control as shown by the
3.6 percent rate registered in March and compared to higher
rates of 9.7 percent in 2008. The inflation rate was 3.9 percent
Last month, central bank governor Rundheersing Bheenick said
it was unlikely that interest rates would be lowered over coming
months as this would have a negative impact on savings and
The bank held its key repo rate unchanged at 4.90 percent
but forecast annual average inflation of 4.7-4.9 percent.