The Reserve Bank of Fiji (RBF) left the Overnight Policy Rate unchanged at 0.25 percent at its 26 February 2026 meeting, judging the existing stance appropriate amid negative headline inflation, solid domestic demand and comfortable foreign-reserve buffers. The rate has been held at 0.25 percent since at least January 2025. System liquidity remains ample at FJD 1.9 billion, keeping lending rates near historic lows. Annual headline inflation was ‑2.5 percent in January, while core inflation measured 0.8 percent; the Bank expects headline inflation to rebound gradually to 2.5–3.0 percent by end-2026. The economy is projected to expand by 3.0 percent this year, underpinned by record January visitor arrivals, robust consumption and a 10.5 percent rise in private-sector credit. Foreign reserves stand at FJD 3.6 billion, covering 5.3 months of imports and are forecast to remain adequate. The Board flagged risks from potential commodity-price spikes linked to Middle-East tensions and the ongoing cyclone season, and reiterated it will adjust policy if required to safeguard its inflation and reserves objectives.
Reserve Bank of Fiji 2026-02-26
RBF keeps Overnight Policy Rate unchanged at 0.25% (26 Feb 2026)
The Reserve Bank of Fiji kept the Overnight Policy Rate at 0.25 % on 26 Feb 2026, pointing to January headline deflation of -2.5 %, resilient domestic demand, ample liquidity of FJD 1.9 bn and foreign reserves of FJD 3.6 bn (5.3 months cover). It expects inflation to move to 2.5–3.0 % and GDP growth of 3 % by end-2026 but said it stands ready to adjust policy should commodity-price shocks or cyclone risks threaten its inflation or reserve objectives.