% in both 2019 and 2020. second, there has been a welcome decline in inflation expectations, as reflected in the survey conducted by the ber. for some time, these expectations had been stuck at around the upper end of the target range. in the most recent ber survey, however, the average declined by half a percentage point to 5. 2 % and 5. 3 % for 2018 and 2019 respectively. similarly, the five - year - ahead inflation expectations declined to 5. 3 %, their lowest since they were first surveyed in 2011. the sarb recognises, however, that one reading does not constitute a trend, and we would need to see further declines, or at least a stabilisation at these recent levels, to feel confident that inflation expectations have fallen on a sustained basis. furthermore, to the extent that inflation expectations are backward - looking, it could take some time for these expectations to move to lower levels, particularly if actual inflation is expected to trend upwards from here on. in other words, it is too early to declare victory in our quest to anchor inflation expectations closer to the midpoint of the target range. this improved inflation environment has contributed to a sounder macroeconomic environment, one where earnings are not eroded at an excessively fast rate. it has also afforded some room for monetary policy to remain accommodative for now and help foster improved economic growth. at the most recent mpc meeting, the repurchase rate ( repo rate ) was reduced by 25 basis points to 6. 5 %. with mediumterm inflation expectations at just over 5 %, this implies a real repo rate of around 1. 5 % compared with the sarb model ’ s estimate of the current neutral rate of around 2 %. the mpc ’ s assessment at that time was that the risks to the inflation outlook were more or less balanced. in its deliberations, most of the upside risks emanated from external sources. these risks are transmitted to the economy via the exchange rate and, by extension, to the risks to inflation. page 7 of 10 as an inflation - targeting central bank, the sarb does not target the exchange rate but rather focuses on the second - round effects of exchange rate changes ( in both directions ) on the inflation outlook. this implies that our assessment of the risks to the rand is an important, although certainly not the only, determinant of how we see the inflation trajectory going forward. at the march 2018

harvesh seegolam : banking resilience - global and domestic perspectives keynote address by mr harvesh seegolam, governor of the bank of mauritius, on the maiden edition of the bank of mauritius thought leadership series on “ banking resilience : global and domestic perspectives ”, 23 july 2021. * * * first deputy governor second deputy governor chairman of omfif members of the bank of mauritius advisory committee chairperson and ceo of the mauritius bankers association ceos of banks ladies and gentlemen a very good morning and afternoon, depending from where you are joining us today. it is my pleasure to welcome you all to this maiden edition of the bank of mauritius thought leadership series. an initiative that the bank is bringing to the banking community and other stakeholders in general, on topical matters in this fast changing world in which we are today living. i wish to thank the omfif for partnering with the bank of mauritius for this inaugural edition. the bank ’ s thought leadership series will allow us to gain from the precious insights of worldacclaimed experts and personalities on key topics impacting, directly or indirectly, the banking and financial world. it will serve as an ongoing platform to generate ideas on how we need to adapt or re - adapt ourselves and our value propositions. this becomes even more important for highly open small - island economies, like mauritius, dependent on tourism and financial services. the bank of mauritius will make its thought leadership series a regular feature on topical matters. our choice of the theme for the debut of the thought leadership series – banking sector resilience : global and domestic perspectives – is explained by the importance of preserving stability and resilience of the banking and financial system amidst the global covid - 19 pandemic that has struck us since march last year. as a matter of coincidence, i started my governorship at the bank of mauritius with the outbreak of the pandemic. this theme is attracting significant attention globally. the bis, imf, oecd, omfif and many central bankers are relentlessly reflecting on how best to maintain stability and resilience of the banking sector. i am more than determined to continuously engage with our international partners as well as our local stakeholders in this ongoing reflection exercise. my objective has been to ensure that our banking and financial system stands the test of this unprecedented crisis that mauritius is facing. maintaining trust and confidence in the banking sector is a very high priority on my agenda. the more so that sound banks