The Central Bank of Lesotho’s Monetary Policy Committee held the CBL Rate at 6.75% per annum on July 24 amid weaker domestic activity and a marginal upward revision to the medium-term inflation outlook, with risks tilted to the upside. Over the past year, the central bank cut the rate by 25 basis points to 6.75% in August 2025 and to 6.50% in November, held it through March 2026, then raised it by 25 basis points in May. Domestic inflation edged higher on rising transport costs while food price pressures remained contained, growth is expected to remain modest and supported mainly by services, and private-sector credit growth remained subdued. Net international reserves stood at USD1.353 billion on July 16, providing 5.4 months of import cover and an adequate buffer for the exchange-rate peg, but are projected to moderate to USD1.217 billion by March 2027 as higher oil costs increase the import bill. Globally, Middle East supply disruptions have driven energy prices sharply higher, while risks from escalating conflict, trade fragmentation and a strong El Niño cloud the growth and inflation outlook. The committee will monitor second-round effects and stands ready to act decisively to safeguard the peg and preserve macroeconomic stability.
2026-07-24Central Bank of Lesotho
Central Bank of Lesotho Holds Policy Rate at 6.75%
The Central Bank of Lesotho held the CBL Rate at 6.75% per annum on July 24 amid weaker domestic activity and a slightly higher medium-term inflation outlook, with risks tilted upward. Net international reserves stood at USD 1.353 billion, covering 5.4 months of imports and providing an adequate buffer for the exchange-rate peg.