THE Central Bank of Lesotho (CBL)’s Monetary Policy Committee (MPC) has provided relief to consumers by maintaining the repo rate at 6.5 percent.
The decision is aimed at ensuring consistency with prevailing economic conditions, conflicts in the Middle East and the broader regional monetary environment.
The repo rate is the interest rate at which the central bank lends money to commercial banks, thereby influencing interest rates on loans for vehicles, personal needs, mortgages, and other financial products. A lower repo rate translates into lower borrowing costs for consumers.
CBL Governor, Dr. Maluke Letete, announced the decision following the MPC’s 118th meeting this week. He added that, while external conditions are increasingly uncertain, they do not currently necessitate a defensive policy response. He further highlighted that inflation remains broadly contained, noting risks of higher-than-expected inflation from anticipated increases in global energy prices, which would raise fuel and transport costs and may feed into broader price pressures
He concluded by affirming that the MPC will continue to closely monitor global developments, particularly the evolution of the Middle East conflict and its implications for energy prices, inflation, and capital flows, alongside domestic inflation dynamics, and the evolution of the external position.
