By RACHNA LAL
The Reserve Bank of Fiji’s mid–year business expectations and retail sales surveys has shown further improvements in business and investor confidence.
This has been revealed by the Governor of the Reserve Bank, Barry Whiteside.
Mr Whiteside further highlighted indications for a continuation of the robust economic activity well into next year.
Therefore, the board of the central bank has agreed to maintain the Overnight Policy Rate at 0.5 per cent.
Mr Whiteside said the current accommodative monetary policy stance remains appropriate to support domestic growth in light of the weak global economic environment.
The Reserve Bank of Fiji has noted the domestic economy has shown great resilience so far for expansion of 3.2 per cent this year with generally positive sectoral performances.
Mr Whiteside said sectoral performances are generally positive with sugar, tourism, timber and garment sectors experiencing increased output.
He however said the gold and fishing sectors show declines.
Further impetus
Mr Whiteside said the financial remains awash with liquidity and lending rates are at historical low.
This, he said, provided further impetus for economic activity as commercial bank credit growth accelerated by 14.6 per cent in the twelve months to July this year.
“The improved prospects noted in the United States and the Euro zone economy is welcoming,” he said.
Mr Whiteside however said the continued deceleration and vulnerabilities in the emerging and developing economies is expected to keep global economic activity muted throughout this year.
The Reserve Bank’s twin objectives remain intact.
Inflation was noted at 1.9 per cent in July while foreign reserves were around $1,834 million yesterday, sufficient to cover 5.1 months of retained imports of goods and non-factor services.