The heightened pace of globalization and financial integration posed serious challenges for the banks operating in Mauritius and for us as regulator. Admittedly, like other regulators in many jurisdictions we were not prepared for the challenges. Subsequently, banks operating in the offshore sector were brought within the purview of more or less the same regulatory and supervisory norms as those applicable to domestic banks.
Inflation will reach around 30% at the end of this year, but it will slow in the next years provided that security risks subside and monetary and fiscal policies are well coordinated. This year's rise in inflation is rather moderate considering the challenges of the war in and inflation reaching its highest levels over many years in many countries.