Reserve Bank of Fiji.

The Reserve Bank of Fiji Governor says the country’s macroeconomic prospects are positive and the outlook for the central bank’s twin monetary policy objectives remains intact.

Ariff Ali says that following its meeting yesterday, the RBF Board has decided to maintain the Overnight Policy Rate at 0.25 percent.

The RBF Board chair says that challenges and concerns facing the global economy remain, with economic activity being weighed down by central banks monetary policy tightening to contain the still high global inflation.

Ali says growth in our two major tourism source markets, Australia and New Zealand, has been subdued and is likely to remain weak for the remainder of the year.

He adds that the Fijian economy is poised to achieve the 8.0 percent growth forecast for 2023, with labour demand and consumer spending being strong in the first half of the year.

Despite noting a recovery, Ali says investment spending remains below pre-pandemic levels.

The Governor says that stable domestic activity is bolstered by a robust financial sector, where private sector credit has expanded, partly due to a rise in new lending by banks.

Ali says that with this backdrop, the current accommodative stance will be maintained, and the RBF will continue to closely monitor global and domestic economic developments and adjust monetary policy accordingly.