PORT LOUIS (Reuters) - The Mauritius central bank said on Friday it expected annual inflation to fall to around 4 percent this year from 9.7 percent in 2008. "The Monetary Policy Committee (MPC) expects inflation ... to converge to around 4 percent during 2009," the bank said. Annual inflation peaked at 9.9 percent last November. The year-on-year inflation rate, a measure some analysts watch closely, has slowed markedly from 6.7 percent in December to 5.2 percent in January and 4.6 percent in February. "The MPC judged that the inflation outlook during 2009 could continue to improve," the bank said in a statement. "Looking further ahead, however, the inflation outlook is clouded by uncertainties regarding the future direction of commodity prices, particularly oil, on international markets and exchange rate movements." Mauritius, a nation of 1.3 million people famed for its white beaches and luxury resorts, relies heavily on imports. Its 2008 trade deficit widened 25 percent from 2007 to $1.9 billion. Earlier this week, the government cut its 2009 economic growth forecast to 2.5 percent, bringing it more in line with predictions by the International Monetary Fund and the Indian Ocean island's central bank. The bank cut its benchmark lending rate to 5.75 percent from 6.75 percent last week in reaction to the worsening economic outlook at home and abroad. | 
