The Monetary Policy Committee MPC of the Central Bank of Lesotho CBL has decided to reduce the Bank’s rate by 25 basis points to 6.5 percent per annum.

CBL Governor Dr. Rets’elisitsoe Matlanyane revealed this when briefing the media on international, regional and domestic economic performances following the 66th MPC meeting held in Maseru on Tuesday.

She said the MPC‘s decision is derived from considering a number of developments, adding that the 2017/2018 National Budget proposes a lower fiscal deficit equivalent to 4.8 percent of Gross Development Product for the current fiscal year compared to the actual deficit of 7.8 percent realised in 2016/2017.

Dr. Matlanyane added that the year-on-year consumer inflation rate increased to 5.0 per cent in June 2017 compared with 4.4 per cent recorded in March 2017, saying this was due to increases in prices of food and non-alcoholic beverages, following an end of government subsidy on locally produced maize meal in May 2017.