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Reserve Bank Fiji Maintains Monetary Policy Stance

The Reserve Bank of Fiji (RBF) Board has agreed to maintain the Overnight Policy Rate (OPR) at 0.5 per cent. In announcing the decision, the Governor and chairman of the
25 Feb 2015 08:17
Reserve Bank Fiji Maintains Monetary Policy Stance

The Reserve Bank of Fiji (RBF) Board has agreed to maintain the Overnight Policy Rate (OPR) at 0.5 per cent.

In announcing the decision, the Governor and chairman of the Board, Barry Whiteside said that aggregate demand continues to expand aided by higher consumption, investment and Government spending.

Imports

As a result, credit and imports have risen and put some pressure on the overall balance of payments position.

However, despite the risks, the outlook for the twin objectives of monetary policy remains intact for now.

Inflation was 0.2 per cent in January but is expected to increase slightly from February onwards as the impact of free primary and secondary tuition falls out.

Infaltion Forecast

Nonetheless, inflation is forecast to remain at comfortable levels throughout 2015 given the soft global commodity prices (oil and food) and low trading partner inflation.

Foreign reserves were around $1,806.3 million on February 24, sufficient to cover 4.5 months of retained imports of goods and non-factor services and are projected to remain adequate throughout 2015.

Mr Whiteside said: “The Reserve Bank will continue to monitor international as well as domestic developments and re-align monetary policy stance if needed.”

 

 



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