The Reserve Bank of Fiji (RBF) maintained the Overnight Policy Rate at 0.25 percent on August 27 to support economic activity while preserving adequate foreign reserves amid supply-driven inflation pressures. The rate has remained at 0.25 percent in every cited decision since August 2025. Headline inflation eased to 5.7 percent in July from 6.1 percent in June but is expected to remain elevated as higher global fuel prices and freight costs pass through to domestic prices. The 2026 growth outlook remains positive, with recent indicators suggesting potential upside, while private sector credit grew 14.6 percent in July amid ample banking system liquidity. Foreign reserves stood at $3.9 billion, covering 5.5 months of retained imports, and are expected to remain adequate over the medium term, supported by government external loan drawdowns, tourism receipts and remittances. Geopolitical tensions and associated energy-market volatility pose risks to investment, inflation and reserves. The RBF will monitor developments and adjust policy as needed to maintain price stability and safeguard foreign reserves.
2026-08-27Reserve Bank of Fiji
Reserve Bank of Fiji Maintains Overnight Policy Rate at 0.25 Percent
The Reserve Bank of Fiji maintained the Overnight Policy Rate at 0.25% on August 27 to support economic activity while safeguarding foreign reserves amid supply-driven inflation. Inflation eased to 5.7% in July, while reserves stood at FJD 3.9 billion, covering 5.5 months of retained imports.