The Central Bank of Lesotho cut its policy rate by 50 bps to 3.75% during its May 2020 meeting, after slashing it by 100 bps during an extraordinary meeting held in April. The decision was based on the latest international, regional, and domestic economic developments and financial markets’ conditions in the wake of the Covid-19 outbreak. Policymakers noted that global economic activity has been under pressure due to the global spread of the pandemic and associated control measures to contain it. Domestically, growth also remained weak, and the economy is expected to shrink by 5.7% in 2020. Meantime, inflation continued to decelerate to a near two-year low of 4% in March. The Committee added that main risks to the economic outlook include the possible spread of the pandemic and related control measures, exposure to international economic developments, domestic structural rigidities and policy uncertainty.
Interest Rate in Lesotho averaged 9.49 percent from 1980 until 2020, reaching an all time high of 20.42 percent in December of 1990 and a record low of 3.75 percent in May of 2020. This page provides - Lesotho Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Lesotho Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2020.
Interest Rate in Lesotho is expected to be 3.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Lesotho to stand at 3.25 in 12 months time. In the long-term, the Lesotho Interest Rate is projected to trend around 3.00 percent in 2021, according to our econometric models.