The Reserve Bank of Fiji (RBF) held its Overnight Policy Rate at 0.25% to support economic activity and preserve adequate foreign reserves while managing inflation driven mainly by higher import costs, extending a series of holds at that level since October 2025. Annual headline inflation eased to 6.8% in September from 7.6% in August but is expected to remain above 6.0% at year-end, partly reflecting El Niño-related pressures on domestic food prices. Economic growth in 2026 is expected to exceed the 1.5% forecast, supported by better-than-expected tourism, positive consumption spending and improved investment and construction activity, although El Niño poses downside risks to growth in 2027. Private sector credit continued to grow strongly, supported by ample liquidity and low interest rates. Foreign reserves covered 5.6 months of retained imports as of 28 October and are expected to remain adequate over the medium term, underpinned by government external financing and tourism receipts. Persistently high global commodity prices continue to fuel inflation, while ongoing geopolitical tensions pose downside risks to the macroeconomic outlook. The RBF will monitor domestic and global developments and take necessary action to maintain price stability and safeguard foreign reserves.
Reserve Bank of Fiji Holds Overnight Policy Rate at 0.25%
The Reserve Bank of Fiji held its Overnight Policy Rate at 0.25% to support economic activity and preserve adequate foreign reserves amid import-driven inflation. Annual headline inflation eased to 6.8% in September but is expected to remain above 6.0% at year-end, while 2026 economic growth is expected to exceed the 1.5% forecast.