The Reserve Bank of Fiji maintained its monetary policy stance, keeping the Overnight Policy Rate at 0.25 percent while reaffirming its dual objectives of price stability and adequate foreign reserves. Year-end inflation for 2025 was 0.0 percent, with lower fuel and gas prices offsetting increases in alcoholic beverages, tobacco and narcotics, and food and non-alcoholic beverage prices unchanged. Inflation in 2026 is projected at around 2.5 percent, with risks including external shocks and a potential electricity tariff increase. Foreign reserves were reported at $3.7 billion, covering 5.4 months of retained imports, while banking system liquidity stood at $2.0 billion; private sector credit grew by 8.4 percent in 2025. The outlook anticipates a fifth consecutive year of growth in 2026, with gross domestic product forecast to expand by 3.0 percent alongside a 2.0 percent rise in visitor arrivals. Risks highlighted include heightened geopolitical and trade tensions, elections in Fiji and key partner economies, subdued demand from key tourism markets, and the possibility of higher domestic electricity tariffs.
Reserve Bank of Fiji 2026-01-29
Reserve Bank of Fiji keeps Overnight Policy Rate unchanged at 0.25 percent
The Reserve Bank of Fiji maintained its Overnight Policy Rate at 0.25 percent, emphasizing its goals of price stability and adequate foreign reserves. Inflation for 2026 is projected at 2.5 percent, with foreign reserves at $3.7 billion and GDP growth forecasted at 3.0 percent, amid risks such as geopolitical tensions and potential electricity tariff increases.