The Reserve Bank of Fiji (RBF) Board maintained the Overnight Policy Rate at 0.25 percent in July, citing slowing economic conditions and inflation driven by more expensive imports. The rate was also held at 0.25 percent in the provided decisions from July 2025 through June 2026. Financial conditions remained accommodative, with ample liquidity keeping lending rates low and supporting sustained private-sector credit growth. Annual inflation rose to 6.1 percent in June and is expected to remain above 6.0 percent through year-end if current oil prices persist, while tourism continued to support activity despite moderating growth momentum in other sectors and consumption. Foreign reserves remained adequate to cover 5.4 months of retained imports and are expected to stay comfortable over the medium term. The International Monetary Fund lowered its 2026 global growth forecast to 3.0 percent amid geopolitical tensions, elevated commodity prices and heightened uncertainty, while slower trading-partner growth and potential El Niño conditions pose additional downside risks. The RBF will monitor incoming information and align monetary policy if needed.
2026-07-30Reserve 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 percent in July as economic conditions slowed and import-driven inflation rose to 6.1 percent in June. Inflation is expected to remain above 6.0 percent through year-end if oil prices persist, while foreign reserves remain adequate at 5.4 months of retained imports.