Policies critical to cushion impacts of global inflation

May 23, 2022 4:00 pm

Bo Li [second from left] with Arif Ali [second from right].

It is critical for Fiji to develop targeted policies to cushion the impact of global inflation on ordinary Fijians without creating additional pressure on government debt.

This was highlighted by International Monetary Fund Deputy Managing Director, Bo Li who is visiting Fiji.

Li says Fiji’s economic rebound is encouraging.

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In his meeting with RBF Governor Ariff Ali this morning, Li shared some avenues that can be explored, but only at the government’s discretion.

“If the direct transfer is not possible, we think targeted tax cut or subsidy could also be used. However, when we use this kind of policy we suggest that these policies should be temporary and there should be a clear ending.”

RBF Governor, Ariff Ali says today’s meeting is critical to identify Fiji’s economic position and prepare for continuing inflation.

“This meeting today was just to see and relook at some of those opportunities that are available because there are still headwinds coming up in the next couple of years.”

The meeting has been seen as a fruitful one, identifying various fronts that Fiji can work on to increase growth potential from a historical three percent to a hopeful five percent.