Monetary Policy Objectives, Formulation and Implementation
The Reserve Bank of Fiji (RBF) is responsible for the formulation and implementation of monetary policy to achieve the twin objectives of maintaining price stability and an adequate level of foreign reserves.
Monetary policy formulation is guided by both international developments and domestic economic considerations and their potential impact on the outlook for inflation and reserves.
Monetary policy is implemented through changes in the overnight policy rate (OPR), which is the RBF’s main policy instrument. This rate is used by the RBF to communicate and signal its monetary policy stance. The OPR has been maintained at the current 0.5 percent since November 2011 in line with the stable outlook for inflation and foreign reserves.