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RBF: Outcomes And Conditions In line With Growth Project

The positive sectoral outcomes and strong demand conditions in the year-to-date are in line with the 4.3 per cent economic growth projection of this year. Reserve Bank of Fiji Governor,
28 Aug 2015 08:50
RBF: Outcomes And Conditions In line With Growth Project
Reserve Bank of Fiji Governor, Barry Whiteside.

The positive sectoral outcomes and strong demand conditions in the year-to-date are in line with the 4.3 per cent economic growth projection of this year.

Reserve Bank of Fiji Governor, Barry Whiteside, said: “In particular, increased consumption and investment demand continue to be supported by favourable financial and labour market conditions.”

He made these comments yesterday as he announced that the Overnight Policy Rate will remain at 0.5 per cent.

Mr Whiteside stated that in contrast, global economic conditions remain fragile.

This, he said was particularly as the recent China currency devaluation heightened uncertainty for the international growth outlook, apart from pushing commodity prices further downwards.

Given the low global commodity prices, especially for oil and soft trading partner inflation expectations, Mr Whiteside highlighted the 2015 year-end inflation is expected to be below three per cent.

Foreign reserves are currently (25 August) comfortable at $1,969.3 million, sufficient to cover 4.9 months of retained imports of goods and non-factor services.

In short, Mr Whiteside said the dual mandates of the Reserve Bank remain stable.

“As a result, the Bank will continue to monitor the latest global and domestic developments and align monetary policy accordingly,” he said.

Feedback: rachael.nath@fijisun.com.fj

 

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