The Reserve Bank of Fiji kept the Overnight Policy Rate unchanged at 0.25%, saying monetary policy must balance elevated domestic prices, the need to maintain adequate foreign reserves and support for economic activity, with slowing growth and inflation driven by higher imported costs arguing against adding pressure to borrowing costs. Headline consumer prices were 3.9% higher than a year earlier and the central bank still expects inflation to reach about 6.0% by year-end, while tourism continues to support activity but higher global fuel prices have dampened travel demand and prompted a downward revision to the 2026 growth forecast to 1.5%. The financial system remained supportive of activity, with ample liquidity of FJD 1.6 billion and sustained private sector lending growth. Foreign reserves stood at around FJD 3.4 billion, covering 4.7 months of retained imports, and the Reserve Bank of Fiji said they should remain adequate in the near to medium term, partly supported by government loan drawdowns from international partners and helping support stability in the Fijian dollar. The central bank said the inflation outlook will depend on whether the Iran-US agreement holds, whether geopolitical tensions ease and how quickly global oil markets normalise, and it will continue to monitor global and domestic developments, including the national budget, and act as needed to safeguard macroeconomic stability.
Reserve Bank of Fiji2026-06-25
Reserve Bank of Fiji Holds Overnight Policy Rate at 0.25%
The Reserve Bank of Fiji kept the Overnight Policy Rate unchanged at 0.25%, saying policy must balance elevated domestic prices, adequate foreign reserves and support for activity as slowing growth and inflation driven by higher imported costs argue against adding pressure to borrowing costs. It still expects inflation to reach about 6.0% by year-end, cut its 2026 growth forecast to 1.5%, and said foreign reserves of about FJD 3.4 billion, equal to 4.7 months of retained imports, should remain adequate.