2.5: Mirror (CTRL+MKEY) strange behavior

When I mirror an object using CTRL+MKEY, no matter what axis or reference point I pick, it always transforms the object’s position but not orientation. In other words the object moves to the right spot, but it doesn’t actually get mirrored.

I’m sure I’m just missing a setting somewhere. I’d be glad for anyone to tell me which one is it :slight_smile: