The Central Bank of Lesotho has cut interest rates and lowered the target floor for its international reserves, as domestic conditions continue to weaken.

Interest rates were cut by 25 basis points to 6.25% and the net international reserve target floor was lowered from $790 million to $630 million at the monetary policy committee’s meeting on January 28.

The central bank maintains a peg between the loti and the rand by holding net international reserves at a level it deems sufficient to