Press Release No. : 28/2024
Date : 27 November 2024
Press Release No 28 – Monetary Policy Stance Maintained
The Reserve Bank of Fiji (RBF) Board maintained the Overnight Policy Rate at 0.25 percent at its meeting on 27 November.
The Governor and Board Chairman, Mr Ariff Ali, stated that recent data supports the upward revision of economic growth for 2024 to 3.8 percent. A record number of visitor arrivals was registered for the month of October, resulting in the cumulative growth of 6.5 percent for the first ten months of the year compared with the same period in 2023. In addition, the outturn in the economy is supported by private sector credit which grew by 11.2 percent in October, as well as a similar increase in government expenditure.
Output in resource-based sectors (sawn timber, woodchips and gold) were broadly positive despite the industry specific challenges faced. Higher incomes and inward remittances with robust tourist demand continues to support consumption activity. Investment indicators point to an improvement although slow-paced, as higher cost of construction and ease of doing business challenges generally persist.
The Board Chairman added that the financial sector has supported the current domestic conditions, with ample liquidity (25/11) at around $2.3 billion, and lending rates are near historic lows.
On the RBF’s twin monetary policy objectives, the annual headline inflation was 3.6 percent in October, lower than the 4.2 percent a month ago and 4.0 percent in the same month last year, with the food and non-alcoholic beverages and alcoholic beverages, tobacco & narcotics categories underpinning the outcome. By this year-end, headline inflation is projected to settle at around 3.5 percent, lower than the 5.1 percent recorded in December 2023, owing to a moderation in prices noted in the food & non-alcoholic beverages, transport, and housing & utilities categories. Additionally, foreign reserves currently stand at $3.8 billion as of today (27/11), sufficient to cover 6.2 months of retained imports of goods and services and are projected to remain adequate over the medium term.
The RBF will continue to monitor global and domestic developments and its implications on the current outlook and align monetary policy accordingly.
RESERVE BANK OF FIJI
For further details, please contact: –
Mervin Singh – Manager Corporate Communications
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj