Press Release No. : 09/2025
Date : 26 June 2025
Press Release No 09 – Overnight Policy Rate Remain Unchanged
The Reserve Bank of Fiji (RBF) Board has maintained the Overnight Policy Rate (OPR) at 0.25 percent, after its meeting on 26 June 2025.
The Governor and Chairman of the Board, Mr Ariff Ali, stated that the RBF’s monetary policy objectives of maintaining price stability and ensuring an adequate level of foreign reserves continue to be effectively met. Growth in the annual inflation rate softened to 0.1 percent in May from the 5.8 percent registered a year ago. The softening is mostly driven by comparatively lower food and fuel prices which slightly offset the higher prices for kava and alcoholic beverages. Foreign reserves are around $3.7 billion (26/06), sufficient to cover 5.8 months of retained imports of goods and services and are projected to remain adequate in the medium term.
On the domestic front, visitor arrivals grew in May (4.4%) compared to the same month a year ago. However, in the first five months of 2025, total visitor arrivals noted an annual contraction of 1.0 percent as travellers from Fiji’s key source markets such as Australia (-2.7%) and New Zealand (-8.1%) declined, more than offsetting the increase from the Pacific Island countries (17.2%) and the United States (11.1%). The performance of resource-based sectors continues to improve except for gold production which has been impacted by industry specific challenges. Monitored indicators show strong consumption activity supported by higher income, inward remittances and new lending by commercial banks for consumption purposes. Investment activity notes a gradual improvement but continues to be weighed down by elevated costs of doing business and regulatory hurdles. Furthermore, the tight labour market conditions experienced in recent years have eased, mitigated by lower resident departures and increased intake of foreign workers.
The Chairman added that the financial sector remains conducive to economic growth with ample system liquidity of $2.1 billion (24/06). The sustained low lending rates supported by the RBF’s accommodative monetary policy stance, have aided growth in private sector credit (9.6%) in May.
Furthermore, Governor Ali stated that the decision to maintain the OPR is supportive of the 3.2 percent growth forecast for 2025 and acknowledged that external risks such as the ongoing trade and geopolitical tensions that can weigh on the outlook for economic growth and RBF’s twin objectives. The Bank will continue to monitor the evolving tensions in the Middle East and its impact on global fuel prices as well as other domestic and global developments, aligning monetary policy accordingly.
RESERVE BANK OF FIJI
For further details, please contact:-
Communications Office
Telephone: (679) 3223 381 Email: info@rbf.gov.fj
Mr Mervin Singh – Manager Corporate Communications
Telephone: (679) 3223 229 Email: mervin@rbf.gov.fj