Press Release No. : 04/2024
Date : 29 February 2024
Press Release No 04 – RBF Keeps Monetary Policy Stance Accommodative
The Reserve Bank of Fiji (RBF) Board decided to maintain the Overnight Policy Rate at 0.25 percent at its meeting on 29 February.
The Governor, Mr Ariff Ali stated that partial data for consumption, investment and major sectoral production are mixed for the first two months of the year. However, visitor arrivals data was higher than expected in January, as Fiji received 70,324 visitors, 4.2 percent higher than the same month last year. Nonetheless, arrivals from our main source market Australia was lower for the second consecutive month compared with the same month a year ago. The labour market has noted continuous increase in job advertisements and wages have risen, reflecting higher emigration. Consequently, personal remittances in January 2024 was around the same level as January 2023, after reaching a new record of $1.25 billion last year.
The Chairman added that credit to the private sector expanded by 8.5 percent in January while liquidity in the banking system was $1,951.1 million as at 28 February, helping keep lending rates around historical lows and supporting economic activity.
Mr Ali noted that weakness in growth in major trading partners is of concern and is being monitored closely. On the twin monetary policy objectives, Mr Ali stated that the annual headline inflation rate fell to 3.6 percent in January from the 5.1 percent noted in December and is forecast to fall to 3.0 percent by the end of the year, notwithstanding any major commodity price shocks. Foreign reserves were around $3.2 billion as at 29 February, sufficient to cover 5.1 months of retained imports of goods and services, and are expected to remain within the adequate range over the medium term.
To conclude, the Governor stated that given the comfortable outlook for foreign reserves and inflation, the accommodative monetary policy stance can continue and the RBF will continue to diligently monitor economic developments and align policy as needed.
RESERVE BANK OF FIJI
For further details, please contact:-
Communications Office
Telephone: (679) 3223 381 Email: info@rbf.gov.fj
Mr Mervin Singh – Manager Corporate Communications
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj