Economy Minister Aiyaz Sayed-Khaiyum. [File Photo]

The move by the commercial banks to reduce the interest rates has been welcomed by the Economy Minister Aiyaz Sayed-Khaiyum.

The Minister highlighted that the reduction in the interest rate will allow Fijians to invest.

Sayed-Khaiyum says that the Fijians will be able to reap the benefits of the investment once the borders open.

The Economy Minister adds lower interest rate will lead to an increase in investment which is essential as it improves the overall wealth of the nation.

“We had been saying this for quite some time that we will eventually see some reduction in the interest rates given the level of liquidity in the market. I think the stabilization from the uncertainty that was there for the past few months, of course, reduction in interest rate is good news.”

As of 31 December, total liquidity in the banking system stood at $836.8 million.

Interest rates also trended lower in November when compared to the corresponding period in 2019.