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Mauritius’ Hidden Tax on Borrowing | Mauritius News
Mauritius is trapped in a vicious economic cycle fueled by an “invisible tax” — banks charging interest spreads four times wider than in the Eurozone, crushing businesses and households. Cutting the key rate to stimulate growth sounds logical, but experts warn it would devastate savers, weaken the rupee, spike import prices, and cripple local exporters who rely on imported inputs. The real fix? Raise the policy rate to stabilize the currency and legally cap bank margins — like Botswana did — forcing lenders to shoulder part of the burden instead of passing costs onto the public. Listen in…
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