Maseru – The Monetary Policy Committee MPC has decided to increase the Net International Reserves NIR target floor from 600.00 million United States US Dollars to 630.00 million US Dollars and to keep the Central Bank of Lesotho CBL rate unchanged at 7.00 per cent.
This was revealed by the CBL Governor Dr. Rets’elisitsoe Matlanyane when briefing the media on international and domestic economic performances following the 65th MPC meeting held in Maseru.
She added that the global economic activity recovered moderately in the first quarter of 2017 due to the positive performance in advanced economies, mainly Japan and the United Kingdom, while the economic activity in the Euro Area and the US remained subdued.
Dr. Matlanyane said growth from the Emerging Market Economies was spurred by positive economic developments in China, while South Africa’s economic performance is estimated to have deteriorated due to amongst others, the anticipated impact of sovereign credit ratings downgrade that is expected to negatively weigh on investment, consumer and business sentiments.
She said domestic economic activity is estimated to have further declined during the period to March 2017, adding that the contraction in quarterly economic activity emanated from both the secondary and tertiary sectors.
According to Dr. Matlanyane the economy remains exposed to internal and external shocks, and the Committee will continue to monitor global, regional and domestic economic developments closely and act accordingly.