The Reserve Bank of Vanuatu (RBV) has maintained its monetary policy settings following its October 30, 2026, board meeting, while streamlining RBV note maturities to seven and 91 days. The RBV Rate remains at 2.75%, the capital adequacy ratio at 12%, the statutory reserve deposit at 5.5% and the liquid asset ratio at 5%. Open market operations will continue at VUV 1.9 billion per issue, with four issues a month.
The decision reflects inflation within target and improving domestic growth prospects, alongside risks from subdued global growth and external inflationary pressures. Annual headline inflation remains within the 0%-4% target range and is expected to stay there over the short term. Domestic growth prospects have been revised upward, supported by investment, exports and recovering tourism. Foreign exchange reserves are projected to remain above the minimum threshold of four months of import cover.
A new monetary and prudential policy implementation framework has already been approved, but its implementation roadmap is still being developed for board consideration. Current settings will remain in place pending completion and approval of the roadmap and subsequent implementation of the framework. The policy stance will be reviewed in December 2026, or earlier if economic and financial conditions warrant.