Policy Changes

1. The Bank of Mauritius reduced the Lombard Rate from 13.0 per cent per annum to 11.5 per cent per annum with effect from 20 June 2000.

2. The Bank has also, in the light of the easing of the monetary policy stance, decided to discontinue the rediscounting facility to commercial banks with respect to Euro and Euro-linked EPZ export bills with effect from 1 July 2000.

3. Following the reduction in the Lombard Rate, commercial banks announced a lowering of their prime lending rates from a range of 11.00-12.00 per cent to 10.00-11.50 per cent. They also reduced their rates on savings deposits from a range of 8.00-8.50 per cent to a range of 6.50-7.00 per cent.