Press Release No. : 26/2025
Date : 27 November 2025
Press Release 26 – RBF Maintains Monetary Policy Stance
The Reserve Bank of Fiji (RBF) Board kept the Overnight Policy Rate (OPR) unchanged at 0.25 percent at its meeting on 27 November. Governor and Chairman of the Board, Mr Ariff Ali, stated that the Bank’s monetary policy objectives of low and stable inflation and maintaining adequate foreign reserves remain intact under the current accommodative stance.
Annual headline inflation based on the Fiji Bureau of Statistics (FBOS) assessment stood at -3.4 percent in October, down from the 2.2 percent in October last year. This was mainly due to lower prices in the food & non-alcoholic beverages, transport, cooking gas and fuel categories, which outweighed higher prices noted in the alcoholic beverages, restaurants & hotels, and miscellaneous goods & services categories. Foreign reserves remain comfortable at $3.8 billion (as of 27 November), sufficient to cover 5.8 months of retained imports.
Domestically, economic activity remains broadly positive. Visitor arrivals totalled 823,409 cumulative to October, reflecting a modest 0.1 percent annual increase, driven by sustained growth in visitor arrivals from the United States, Pacific Islands, the United Kingdom and Europe. This helped offset weaker than expected arrivals from traditional markets of Australia and New Zealand. Consumption activity continued to expand, supported by higher incomes, sustained remittance inflows, fiscal support and the reduction in the Value Added Tax rate. Investment activity noted a pick-up, as reflected in the increased uptake of construction projects amidst some moderation in building material prices. Sectoral outcomes were mixed but generally favourable, with timber and electricity production recording gains while sugar, mineral water and gold ore output recorded subdued outcomes due to industry specific challenges.
Overall, economic performance was further supported by private sector credit, which grew by 9.8 percent in October. Consequently, recent trends in consumption and investment, combined with sectoral performance and a 7.9 percent increase in government expenditure in the first nine months of 2025, have provided a notable boost to aggregate demand and strengthened overall economic momentum. These developments support the upward revision of the 2025 economic growth to 3.4 percent, from the 3.2 percent projected in June.
The financial sector environment remained conducive, providing a supportive backdrop for economic activity, with ample liquidity (of $2.1 billion as of 26 November) within the banking system and the interest rates at historically low levels.
Nonetheless, Governor Ali cautioned that risks to the outlook persist. While trade tensions have eased somewhat, particularly between the US and China, geopolitical uncertainties remain elevated, with new frictions emerging, especially around nuclear testing among major powers. Additionally, the current cyclone season poses downside risks to the domestic economy, with forecasts indicating the likelihood of one to two cyclones. The RBF will continue to closely monitor global and domestic developments and its implications on the current outlook and align 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