"Interest Rate Flexibility in the Post-Financial Liberalization Period: The Case of Mauritius"

Mauritian financial system has been through a long phase of financial reforms since the mid-1980s with interest rate liberalization as a major objective. The financial market, like the goods market can achieve equilibrium where demand for funds equals the supply of funds. There is evidence of increased flexibility in interest rates during the post-liberalization period as compared to the period when interest rates were regulated by monetary authorities.