Fiji maintains rate, consumption remains robust

Fiji's central bank held its Overnight Policy Rate steady at 0.50 percent, saying the country's economy remains robust despite the slowdown in China and major trading partners as consumption remains buoyant, investment activity is supported by easy monetary policy, and tourism and remittances remain positive.


The Reserve Bank of Fiji issued the following statement:


"The Reserve Bank of Fiji Board at its monthly meeting on 29 October agreed to maintain the Overnight Policy Rate at 0.5 percent.

In announcing the decision, the Governor and Chairman of the Board, Mr Barry Whiteside stated that “domestic economic conditions remain robust despite the recent downgrade of global growth by the International Monetary Fund and further slowdown in China and major trading partner economies. Aggregate demand continues to be propelled by buoyant consumption and investment activity supported by favourable monetary conditions, and generally positive sectoral performances especially tourism and remittances.”

Governor Whiteside highlighted that potential risks to our growth outlook include the subdued outlook for trading partner economies coupled with our currency appreciation against the Australian and New Zealand dollars and weakening against the United States dollar and a pickup in commodity prices. Domestically, the risks from natural disasters including adverse climatic conditions, such as the prolonged El-Nino which has affected our sugar sector, remain a concern.

Nonetheless, our projections for both inflation and foreign reserves remain within comfortable levels in the near and medium term. Inflation was 1.5 percent in September and is forecast at 2.0 percent by year-end. Foreign reserves are currently (29 October) around $1,989.7 million, sufficient to cover 6.0 months of retained imports of goods and non-factor services, based on recent revisions to our macroeconomic forecasts.

The Governor concluded that any change to monetary policy will be guided in particular by the developments on the outlook for inflation and foreign reserves. "

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Fiji maintains rate, consumption remains robust

Fiji maintains rate, economy on track for 4.3% growth

Fiji's central bank left its benchmark Overnight Policy Rate (OPR) steady at 0.50 percent, saying the country's economy remains on track to reach the 4.3 percent growth forecast for this year while the bank's twin objectives remain intact.
The Reserve Bank of Fiji (RBF), which has maintained its rate since November 2011, said the improved outlook for tourism and gold, and buoyant demand is supporting the growth outlook along with improved business confidence, continued credit demand and investment in projects.
Downside risks are represented by a potential decline in government spending and weather-related hit to cane output, RBF Governor Barry Whiteside said in a statement.
Fiji's economy expanded by 4.1 percent last year and the International Monetary Fund in April forecast 3.3 percent growth in 2015.
Fiji's inflation rate rose to 0.8 percent in June from 0.6 percent in May, and Whiteside said he expects inflationary pressure to remain "subdued" due to modest growth in the country's trading partners because the expected pick-up in global growth has not yet materialized.
Fiji's foreign reserves amounted to US$1.988.6 billion as of July 30 - equal to 5 months of imports - from $1.987 billion as of June 30.


The Reserve Bank of Fiji issued the following statement:


"The Reserve Bank of Fiji (RBF) Board at its monthly meeting on 30 July agreed to maintain the Overnight Policy Rate (OPR) at 0.50 percent.
The Governor and Chairman of the Board, Mr Barry Whiteside stated that “on the international front, the expected pick-up in global growth has not fully materialised. As a result, Fiji’s trading partners’ recent growth outcomes have remained modest, with external inflationary pressures remaining subdued.”
Mr Whiteside noted that domestically, improved sectoral outcomes for tourism and gold and buoyant demand conditions are indicative of Fiji’s currently strong growth outlook. Improved business confidence as seen in higher recruitment intentions, combined with continued credit demand and ongoing construction and infrastructure projects confirm the robust investment activity to date. While potentially lower Government expenditure and weather-related impact on cane output present downside risks to this outlook, on balance, the Fijian economy is on track to achieve the 4.3 percent growth projected for this year.
The Governor also highlighted that the twin objectives of monetary policy remained intact, with the June inflation rate at a low 0.8 percent and the 30 July 2015 foreign reserves level adequate at $1,988.6 million (5.0 months of retained imports of goods and non-factor services cover).
The Chairman concluded that, “the Reserve Bank of Fiji will continue to monitor global and domestic economic developments and align monetary policy accordingly.”

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Fiji maintains rate, economy on track for 4.3% growth