If the Bank had aimed at a price stability target of 2 percent at an earlier stage, it could have pursued more timely and bolder monetary easing in response to a decline in the inflation rate, thereby enabling the economy to overcome deflation at an early stage. With its protraction, deflation has become a problem that is increasingly stubborn and difficult to overcome.
Of all the five revocations of banking licences in Mauritius, three were clearly motivated by problems the roots of which were found at the level of Boards of Directors. Members of the Boards of Directors obscenely took advantage of their positions to influence imprudent credit decisions making. The Bank of Mauritius issued 9 Guidelines to the banking industry so far.