The Monetary Policy Committee (MPC) of the Central Bank of Lesotho (CBL) held its 78th meeting on Wednesday 23rd July 2019, where it considered international, regional and domestic economic developments and financial markets conditions, to determine monetary policy action that is appropriate for executing CBL’s primary mandate of maintaining price stability.

Speaking in Maseru on Tuesday, the CBL Governor Dr Ret’selisitsoe Matlanyane, said the global economic activity was relatively strong in the first quarter of 2019, amid heightened downside risks and indications of weakening global trade.

She also said the global inflation rates remained low, and that inflationary pressures eased in advanced economies, with the US and Euro Area registering decelerations, while moderate increases were seen in Japan and the UK.

In her remarks she further indicated that in emerging market economies, economic growth rates declined in India and South Africa, and remained unchanged in China in the first quarter of 2019.

She stated that in South Africa, economic growth is expected to rebound in the second quarter of 2019, boosted by the mining and manufacturing sectors.

Locally she said the domestic economic activity slowed down in April 2019, and that the CBL measure of economic activity, indicated that output had increased at a lower rate of 1.0% in April 2019, compared with an increase of 1.3% in March 2019.