Press Release No. : 04/2007
Date : 30 March 2007
The Reserve Bank Board held its monthly meeting on 29 March 2007 and decided to leave interest rates unchanged.
The Board has, however, announced a number of policy measures to help safeguard Fiji’s balance of payment. The decision was made against the backdrop of a contracting economy, falling investment, inflation edging upwards, underperformance of exports, widening trade deficit and declining foreign reserves. Under such an economic climate, the Board felt it necessary to put in place a combination of measures to protect Fiji’s financial position but at the same time ease upward pressures on interest to help growth and investment.
A reduction in the Statutory Reserve Deposits ratio (SRD) from 7 percent to 6 percent, effective 1 May 2007.
The Bank will continue to closely monitor the current economic developments.