Monetary Policy Objectives, Formulation and Implementation
The Reserve Bank of Fiji (RBF) is responsible for the formulation and implementation of monetary policy. The RBF implements its monetary policy strategy through an interest rate targeting framework. This involves setting the overnight policy rate (OPR) which influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, and ultimately economic activity and inflation.
The RBF’s twin monetary policy objectives are maintaining price stability and an adequate level of foreign reserves to support growth and improve economic prosperity and welfare for the people of Fiji.
Monetary policy is reviewed every month and is guided by international and domestic developments and their impact on the outlook for inflation and foreign reserves.