Lesotho Central Bank Rises Rates to 7.0%

The Central Bank of Lesotho (CBL) raised its discount rate by 25 basis points to 7.0% at its September 2026 meeting, as widely expected.

It was the second rate hike this year, amid heightened inflation risks from elevated energy prices linked to tensions in the Middle East.

CBL Governor Emmanuel Maluke Letete cited global and domestic developments, noting increased uncertainty, oil prices above US$100 per barrel and disruptions to shipping through the Strait of Hormuz.

Inflation is projected to rise to 4.7% in 2027, mainly due to higher food prices, while real GDP growth is expected to remain modest in 2026 before gradually strengthening over 2027–2028.