Monetary policy objectives comfortable: RBF
January 29, 2019 1:29 pm
The outlook for the monetary policy objectives is comfortable says Reserve Bank Governor, Ariff Ali.
In its latest economic review the RBF says global crude oil prices have declined by almost 17.6 percent since October last year and this will help suppress domestic inflation and imports growth this year.
The Governor says consequently, inflationary pressures are projected to subside to 3.5 percent by the end of 2019.
Ali says the financial system is stable with gross assets rising to $20.7 billion at the end of 2018.
He says although banking system liquidity declined over the year in line with strong domestic demand and developments in the external sector, it is adequate at $374.4 million and ample to support economic activity.
According to the RBF Board, the Fijian economy’s growth performance of more than three percent is anticipated to persist over the medium term as macroeconomic policies continue to be accommodative.
Private investment is gaining momentum given the increase in forward looking indicators such as the number and value of building permits issued.
The RBF says the tourism industry is also envisaged to achieve another record-breaking year in terms of arrivals and earnings.