The Reserve Bank of Fiji maintained the overnight policy rate at 0.25 percent, balancing heightened inflationary pressure against weakening economic conditions. Headline inflation rose to 7.6 percent in August from 5.7 percent in July and is expected to remain above 6 percent through year-end, reflecting higher food, energy and kava prices, the fading effect of an August 2025 value-added tax reduction, and commodity price and El Niño risks. Economic activity remained broadly in line with forecasts, supported by tourism, consumer spending and construction. Foreign reserves stood at about FJD 3.9 billion, equivalent to 5.5 months of retained imports, while banking system liquidity of around FJD 2.1 billion supported low lending rates and private sector credit growth. The Reserve Bank said global and domestic risks, including El Niño, could weaken the 2027 growth outlook.
2026-09-24Reserve Bank of Fiji
Reserve Bank of Fiji holds overnight policy rate at 0.25 percent as inflation rises
The Reserve Bank of Fiji held the overnight policy rate at 0.25 percent as it balanced rising inflation against weaker economic conditions. Inflation reached 7.6 percent in August and is expected to remain above 6 percent through year-end, while foreign reserves and banking system liquidity remain adequate.