Fiji Interest Rate

The Reserve Bank of Fiji kept its benchmark interest rate unchanged at a record low of 0.25 percent during its November meeting, saying an accommodative monetary policy stance remained appropriate, amid a gradual economic recovery that was supported by an improvement in consumption and investment, rising vaccination rates and further easing curbs. Policymakers noted there was a bounce-back in domestic economic activity ahead of the 2022 National Election, although it remains below pre-pandemic levels. On prices, the central bank projected the country's Inflation over the next 12 months to rise further, due to higher fuel and food prices. Turning to foreign reserves, the amount stood at USD 3.1 billion as of November 25th, sufficient to cover 10.6 months of retained imports. Policymakers reiterated that they will remain vigilant in their macroeconomic assessment given the evolving global and domestic conditions, and align monetary policy accordingly.