The Reserve Bank of Fiji held its overnight policy rate at 0.25 percent, balancing continued support for economic activity with the need to maintain adequate foreign reserves as supply-driven inflation remains elevated. Headline inflation eased to 5.7 percent in July from 6.1 percent in June, but higher fuel, gas and kerosene prices contributed about 2.8 percentage points and continued pressure is expected from global fuel prices and freight costs. Foreign reserves stood at FJD 3.9 billion, covering 5.5 months of retained imports, supported by government external borrowing, tourism receipts and remittances. Economic activity remained positive, with record July visitor arrivals, resilient investment and private sector credit growth of 14.6 percent. Banking system liquidity was about FJD 2 billion, while geopolitical tensions, energy market volatility, election-related uncertainty and social and security concerns remained risks to inflation, investment and reserves.
2026-08-27Reserve Bank of Fiji
Reserve Bank of Fiji holds overnight policy rate at 0.25 percent amid supply-driven inflation
The Reserve Bank of Fiji held its overnight policy rate at 0.25 percent as elevated supply-driven inflation was offset by positive economic activity and adequate foreign reserves. Inflation was 5.7 percent in July, while reserves of FJD 3.9 billion covered 5.5 months of retained imports.