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RBF Maintains Monetary Policy Stance

The Reserve Bank of Fiji Governor, Barry Whiteside, has stressed any change to monetary policy will be guided by the developments on the outlook for foreign reserves. Mr Whiteside made
01 May 2015 10:01
RBF Maintains Monetary Policy Stance

The Reserve Bank of Fiji Governor, Barry Whiteside, has stressed any change to monetary policy will be guided by the developments on the outlook for foreign reserves.

Mr Whiteside made these comments as the central bank yesterday announced its decision to maintain the Overnight Policy Rate at 0.5 per cent.

“The Fijian economy is expected to perform better-than-anticipated in 2015 with growth projections revised upward to 4.3 per cent from 4.0 per cent,” he said.

“The pressure on foreign reserves remains given Fiji’s growing import demand for consumption and investment related goods.

“In its current assessment, both objectives of monetary policy are considered to remain comfortable over the near term.”

Inflation rose to 2.4 per cent in March, from 2.1 per cent in February, mostly due to higher food, alcoholic beverages and tobacco prices.

However, the recent announcement on the reduction in domestic fuel prices by the Fiji Commerce Commission is expected to ease inflationary pressures in the months ahead.

Foreign reserves are currently as at April 30 was around $1.857 billion, sufficient to cover 4.6 months of retained imports.

 




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