In 2021, about 25 per cent of new loans had a maturity of more than one year, whereas reversion towards levels closer to those observed around 10-15 years ago, characterised by shorter maturities and more recourse to flexible rate debt (Chart 19, left panel). Further shifts might be expected in response to the current rate hiking cycle.
The same set of policies that is appropriate for a particular phase of the economic cycle may not necessarily be appropriate for a different phase of the cycle if the objectives of the Bank’s policies are to be achieved. That is why the Bank of Mauritius re-oriented its policy stance and brought about reductions in the rate of interest during the last two years.