Monetary Policy Objectives, Formulation and Implementation
A key responsibility of the Reserve Bank of Fiji (RBF) is the formulation and implementation of monetary policy. It conducts monetary policy using an interest rate targeting framework to set the overnight policy rate (OPR) on a monthly basis. The RBF’s OPR influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, and ultimately economic activity, inflation and foreign reserves.
The RBF has two main objectives for monetary policy which include maintaining price stability and an adequate level of foreign reserves to support growth and improve economic prosperity and welfare for the people of Fiji.
The monetary policy stance is reviewed every month based on current and expected international and domestic developments and their impact on RBF’s outlook for inflation and foreign reserves.