Understanding the formulation and execution of monetary policy for Lesotho.
The Central Bank of Lesotho (CBL) plays a crucial role in managing the country’s money supply. In 2004, the Monetary Policy Committee (MPC) was established to enhance transparency and accountability. The MPC includes Governors, non-executive Board members, Director of Financial Markets, Director of Research & Secretary, and an external member.
The MPC’s key responsibilities are:
- Economic Review : Review the international and domestic economic developments and their likely impact on the Central Bank of Lesotho’s ability to achieve and maintain price stability;
- Policy Formulation : The MPC considers and formulates appropriate monetary policies to maintain stable prices in the Kingdom of Lesotho.
- Framework Review : Regularly, review and evaluate the CBL’s monetary policy framework and make necessary adjustments.
- Procedural Rules : The MPC sets its own procedural rules and regulations for efficient operations and proceedings.
What you need to know about the CBL monetary policy
