Press Release No. : 18/2024
Date : 29 August 2024
MONETARY POLICY STANCE UNCHANGED
The Reserve Bank of Fiji (RBF) Board kept the Overnight Policy Rate unchanged at 0.25 percent in its August meeting.
Domestic economic activity show signs of some momentum, particularly with visitor arrivals surpassing expectations and the recent improvements noted in sectoral production. In July, 98,332 visitors came to Fiji, an all-time high for a particular month and taking the total for the year to 545,487 visitors, 6.7 percent higher than the corresponding 2023 period. On aggregate demand, consumption remains positive supported by strong tourism activity, higher income levels and inward remittances. Similarly, latest partial and leading indicators of investment suggest a gradual pickup in activity.
Financial conditions remain conducive to growth, amid high banking system liquidity of $2.2 billion (28/08), and near historical low lending rates. Commercial bank lending continues to accelerate, resulting in private sector credit expanding by 11.6 percent in July.
Annual headline inflation recorded its second peak of 2024 in July at 6.8 percent, influenced mainly by food and non-alcoholic beverages, alcoholic beverages, tobacco & narcotics, transport and housing & utilities. With the effect of the 2023 VAT rate hike starting to wane, inflation is expected to moderate to around 4.0 percent to 5.0 percent by year-end. Foreign reserves stood around $3.7 billion (29/08), sufficient to cover 6.0 months of retained imports of goods and services and are projected to remain adequate over the medium term.
The RBF will continue to monitor incoming information and its implications on the current outlook and align monetary policy accordingly.
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