The Reserve Bank of Fiji Board at its monthly meeting on 28 March agreed to maintain the Overnight Policy Rate at 0.5 percent.
The Governor and Chairman of the Board, Ariff Ali stated that the monetary policy decision was based on latest available information, assessment of existing and projected economic conditions and the outlook on the Bank’s twin monetary policy objectives of inflation and foreign reserves.
The major risks include commodity price shocks especially oil, natural disasters, trade tensions and a growth slowdown in major trading partners.
Commercial bank excess liquidity has averaged around $300 million in the past month and is sufficient for supporting growth.
Domestic economic growth is likely to moderate this year but remains positive based on partial indicators and business sentiments.
Headline inflation in February was unchanged at 5.1 percent from January underpinned by higher prices of yaqona, food and fuel.