The Reserve Bank of Fiji (RBF) held the Overnight Policy Rate at 0.25% in September, balancing heightened, largely externally driven inflation against the need to support growth amid weakening conditions. The rate has remained at 0.25% since September 2025. Headline inflation rose to 7.6% in August and is expected to remain above 6% through year-end, reflecting higher food, energy and kava prices, fading effects from the August 2025 VAT reduction, commodity-price volatility and El Niño-related weather risks. The economy expanded by 2.5% in 2025, while indicators suggest 2026 growth is broadly in line with forecast, supported by tourism, consumer spending and construction, with ample banking-system liquidity maintaining relatively low lending rates and supporting private-sector credit. Foreign reserves covered 5.5 months of retained imports as of September 23, supported by tourism and remittance inflows and government external loan drawdowns, and are expected to remain adequate over the medium term. The RBF said risks to the outlook had become more challenging and will adjust monetary policy where necessary to maintain price stability and preserve reserve adequacy.
2026-09-24Reserve Bank of Fiji
Reserve Bank of Fiji Holds Policy Rate at 0.25%
The Reserve Bank of Fiji held the Overnight Policy Rate at 0.25%, balancing inflation of 7.6% in August against weakening growth conditions. Inflation is expected to remain above 6% through year-end, while foreign reserves remain adequate and monetary policy may be adjusted to preserve price stability and reserve adequacy.