Foreign reserves at $2.13b
30 October, 2018, 2:00 am
FIJI’S foreign reserves stand at $2138.5 million, sufficient enough to cover 4.9 months of retained imports of goods and non-factor services.
The Reserve Bank of Fiji board held its monthly meeting recently where they decided to maintain the overnight policy rate at 0.5 per cent.
Central bank governor and board chairman Ariff Ali said inflation was 4.6 per cent in September compared with 4.3 per cent in August.
“The uptick in inflation was largely due to supply shortages that drove kava and vegetable prices up relative to last year, along with higher prices for alcohol, tobacco, and domestic fuel which rose as a result of duty changes and international fuel price adjustments.
“Nevertheless, inflation is anticipated to subside to 3.5 per cent in 2019 and 3.0 per cent in 2020,” he said.
He said the decision to maintain the policy rate was based on the receding outlook for inflation, adequate foreign reserves and current economic conditions.
Mr Ali said the RBF would continue to monitor international and domestic developments and align monetary policy accordingly.
He said unless threats to the RBF’s dual mandate emerged, the current accommodative monetary policy stance would remain.