Bloomberg News

Mauritius’s Bheenick Says to Meet Banks on Lending Rates

September 13, 2011

(Updates with central bank governor’s comments in second paragraph.)

Sept. 13 (Bloomberg) -- Mauritius’s central bank Governor Rundheersing Bheenick plans to meet with commercial banks about reducing the spread between the benchmark rate and lending rates.

The Bank of Mauritius wants to bring the differential down to “more reasonable levels,” Bheenick told reporters today in Port Louis, the capital. Initial discussions in 2010 resulted in lenders publishing their interest rates on the central bank’s website, he said.

The central bank’s monetary policy committee left the benchmark rate unchanged at 5.5 percent yesterday as inflation slowed, after increasing it at the last two meetings. Commercial bank’s lending rates range from between 2 percent and 19.75 percent above the prime rate, which varied from 7.3 percent to 9 percent at end-June, according to data on the Bank of Mauritius’s website.

Mauritius Commercial Bank and State Bank of Mauritius Ltd. are the Indian Ocean island nation’s biggest lenders.

--Editors: Gordon Bell, Digby Lidstone

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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