cent in october 2022, exceeding the regulatory limit of 100 per cent. in terms of material foreign currency, the lcr was at 173 per cent. the high lcr denoted adequate liquidity buffers to support short - term net outflows in both domestic and foreign currencies, as well as safeguard the resilience of the banking system against liquidity strains that could impact credit flowing to the economy. the banking sector provided continuous support to the economy by ensuring constant flow of credit. bank credit to the private sector grew, on an annual basis, by 2. 4 per cent in october 2022 compared to 3. 1 per cent in july 2022. credit to the corporate sector contracted at an annual rate of 4. 2 per cent in october 2022. this contraction was primarily due to the decline in debt securities issued by the corporate sector and held by banks. moreover, key sectors have been reducing their fx borrowings from banks since november 2021. as economic activity continued to gain momentum, the corporate sector has been taking on more loans denominated in rupees – the main component of bank credit to the corporate sector – with the growth rate remaining in positive territory since august 2022. bank credit to households continued to grow strongly, with an annual rate of 13. 6 per cent in october 2022 compared to 14. 5 per cent in july 2022. the asset quality for the banking sector has continued to improve and remained below pre - pandemic levels. non - performing loans represented 4. 4 per cent of gross loans and advances as at end - september 2022, an improvement from 4. 6 per cent as at end - june 2022. the drop in the npl ratio was driven by an improvement in the npl ratio for both the domestic and non - resident credit portfolio. the average npl ratio in the two years preceding the pandemic, that is 2018 and 2019, was around 5. 5 per cent, indicating stronger asset quality currently. the latest stress testing exercise supported the resilience of the banking sector to absorb and limit the amplification of plausible shocks emanating from the lingering pandemic and prolonged russia - ukraine war. the capital and liquidity buffers of the banking sector as at end - september 2022 were adequate to provide cushion against potential shocks. the bank maintains its prudent approach in assessing and monitoring risks to financial stability arising from within and outside mauritius. mpc decision 4 / 6 bis -

harvesh seegolam : current economic conditions and outlook statement by mr harvesh seegolam, governor of the bank of mauritius, at the post monetary policy committee ( mpc ) press briefing, port louis, 14 december 2022. * * * ladies and gentlemen, members of the media, good morning. welcome to this press briefing for the fifth monetary policy committee ( mpc ) meeting of the year. today's mpc meeting was held in the background of latest global developments with the objective to further shield the country and its people against the growing pressures. at the outset, i wish to put in context the situation. you would recall that, at the very start of the pandemic, the mpc had promptly adopted an accommodative stance and reduced the krr in line with that was needed across those testing times. there had been two successive cuts, one to the tune of 50 basis points, and the other to the tune of 100 basis points, which brought the key repo rate to 1. 85 % from 3. 35 %. it should also be noted that year on year inflation rate in march 2020 was at 2. 9 %. the accommodative stance was maintained for the last two years. thereafter, the mpc decided to embark on a normalisation process in the light of the pace of economic recovery and inflationary pressures. this means that the krr is now being raised because the economic conditions warrant such a normalisation approach. international economic developments i will now provide you with an overview of global economic developments. the global economy continues to be characterised by challenges amidst high price pressures due to the ongoing geopolitical conflict and slower growth momentum stemming from rapid global monetary policy tightening in advanced economies, leading to a slowdown in economic activities in several countries. the imf, in its october 2022 world economic outlook, maintained global growth at 3. 2 per cent in 2022, amidst growing uncertainties tied to the ongoing war and china's zerocovid strategy. the oecd, in its november 2022 economic outlook report, has forecast global growth at 3. 1 per cent for 2022. inflation remains elevated in many countries amidst the delayed pass - through of past increases in food and energy prices. price pressures are now deemed to be more broad - based, extending beyond food and energy prices and spilling over to higher core goods and services inflation. in october 2022, year - on - year