RESERVE BANK OF FIJI
suva
The Reserve Bank of Fiji has agreed the current monetary policy stance remained appropriate and hence maintained the Overnight Policy Rate (OPR) at 0.5 per cent.
Governor Barry Whiteside however said the Reserve Bank will closely monitor the impact of these developments on the Bank’s core objectives which are foreign reserves and inflation.
“While the outlook on foreign reserves and inflation remain stable at the moment, the Reserve Bank will re-align monetary policy if in its assessment there are challenges to its twin objectives,” he said.
Inflation
In March, inflation declined to -0.2 per cent from 0.2 per cent in February.
The outturn was largely because of base-related effects as well as the impact of the free primary and secondary education structural change which was built into consumer prices from last month.
Partial indicators for the first quarter of 2014 reveal the domestic economy is on track to expand by 3.8 per cent this year following a 3.6 per cent growth estimate for 2013.
Mr Whiteside said the recent upward revision to the 2014 GDP projection is a reflection of continued buoyant domestic conditions.
Feedback: ranobab@fijisun.com.fj