THE Reserve Bank of Fiji has maintained the Overnight Policy Rate (OPR) at 0.5 per cent.
The central bank board noted that despite the general pick-up in the economy in the year to date and positive sentiments for the near term, it was important that monetary policy remained supportive of the economic recovery.
And that in the coming months, the board would continue to assess global and domestic developments and align monetary policy accordingly.
Governor Barry Whiteside said the global growth outlook remained clouded by underlying problems in the Euro zone and the associated flow-on effects on its trading partner economies.
And having picked up in the early months of 2012, Mr Whiteside said growth in the world economy had since softened.
Mr Whiteside said that despite the global setbacks, domestic real sector outcomes were generally positive in the first half of the year.
"Consumption spending remained elevated while investment activity is expected to strengthen in the second half of this year, supported by the pick-up in government capital projects and several major private investment activities.
"Increased domestic credit to the private sector also augurs well for the economy going forward," he said.
Mr Whiteside added that the cash-based trade data for the first half of the year showed the threat to Fiji's external sector with the background of slowing global growth is limited for now.
Foreign reserves, at the current level of $1,512.4 million remained comfortable and were sufficient to cover 4.8 months of retained imports of goods and non-factor services.
Consumer prices rose by 4.0 per cent in July from a year earlier — slower than the inflation rates noted in previous months — largely reflecting the reduction in oil and food prices relative to last year.