Image: Star.com

The International Monetary Fund on Monday told Mauritius that the country needs to tighten monetary policy and modernize its framework to respond to shocks and tackle inflationary pressures.

In a statement late on Monday, the IMF said its directors had noted on their yearly consultative mission to Mauritius that “inflation has picked up on the back of supply shocks, but there are signs of further building inflationary pressures”.

“The mission recommends tackling inflationary pressures by tightening monetary policy while modernizing the monetary policy framework to strengthen policy response to shocks,” it said.

Mauritius’s inflation fell to 5.3 percent year on year in July from 6.4 percent a month earlier, data from its statistics office showed.