- Decision
- Maintain
- Rate change
- 0 bps
- Overnight policy rate
- 0.25%
The Board of the Reserve Bank of Fiji on 30 October 2025 kept the Overnight Policy Rate unchanged at 0.25 percent, judging that deeply negative inflation (-3.8 percent y/y in September, down from ‑3.5 percent in August and 3.6 percent a year earlier) and foreign reserves of FJD 3.9 billion—covering 6.1 months of imports—continue to meet its dual mandate of price stability and external sustainability. The OPR has been steady at 0.25 percent since at least January 2025. System liquidity remains ample at about FJD 2.3 billion, keeping lending rates low and supporting 9.6 percent private-sector credit growth in September. The economy is poised for a fourth consecutive year of expansion, underpinned by modest visitor-arrival growth of 0.3 percent to 735,154 in the year to September, firm consumption evidenced by higher VAT collections, vehicle registrations and electricity demand, and improving investment indicators amid moderating building-material costs; timber and electricity output rose, though gold ore, mineral water and sugar declined. The central bank sees reserves remaining adequate, but flags external headwinds from escalating US-China tensions, new industry tariffs and the forthcoming cyclone season. It affirmed that it will continue to track international and domestic developments and adjust policy as needed.
Rate evolution
From June 2025 to September 2026, the Reserve Bank of Fiji kept the Overnight Policy Rate at 0.25%, maintaining support for economic activity. The holds through early 2026 reflected subdued inflation and adequate foreign reserves amid firm demand, and in February the Reserve Bank judged the rate appropriate as January headline inflation fell to -2.5% and core inflation stayed near 0.8%, while forecasting year-end headline inflation at 2.5%-3.0% and flagging risks from trade and Middle East tensions, commodity prices, electricity tariffs, elections, tourism demand and cyclone shocks.
By 25 June, the Board again held the rate as it balanced rising domestic prices, adequate foreign reserves and support for activity, noting that headline inflation had reached 3.9% and was expected at about 6.0% by year-end, while higher global fuel prices dampened travel demand and prompted a cut in the 2026 growth forecast to 1.5% from 3.0%. On 30 July, it maintained the rate as activity slowed and import costs lifted inflation to 6.1% in June, and on 27 August it held again to support activity and adequate reserves amid supply-driven inflation, which eased to 5.7% in July but was expected to remain elevated due to global fuel and freight costs.
On 24 September, the Board again held the rate, balancing heightened inflationary pressure driven largely by external factors with support for growth amid weakening conditions, as headline inflation rose to 7.6% in August from 5.7% in July on higher food, energy and kava prices and the fading effect of the August 2025 value-added tax rate reduction. Inflation was expected to remain above 6.0% through year-end amid volatile global commodity prices and weather risks from the developing El Niño event, while reserves of around FJD 3.9 billion covered 5.5 months of retained imports and economic activity tracked expectations on tourism, consumer spending and construction.