Press Release No. : 31/2026
Date : 29 October 2026
Press Release No 31 – RBF Monetary Policy Stance Remains Unchanged
The Reserve Bank of Fiji (RBF) Board agreed to maintain the Overnight Policy Rate at 0.25 percent at its meeting on 29 October 2026.
The Governor and Chairman of the Board, Mr. Ariff Ali, explained that the policy decision aims to support economic activity and preserve adequate foreign reserves, while managing inflation pressures arising mainly from higher import costs.
Despite a challenging global environment, Fiji’s economy continues to demonstrate resilience, due to better-than-expected tourism activity, positive consumption-related spending, coupled with improved investment and construction activity. Visitor arrivals in the year to September rose by 3.7 percent over the same period last year, largely driven by higher inflows from Australia, the United States and Europe. Sectoral performance was generally positive, with increases noted for electricity, mining, mineral water and sugar production. Based on partial indicators that the RBF monitors, economic growth out turn is expected to be better than the 1.5 percent growth forecast for 2026. However, there are downside risks for next year’s economic growth largely driven by the impact of El Niño.
Foreign reserves stood at around $4.0 billion (as of 28/10), sufficient to cover 5.6 months of retained imports, and are expected to remain adequate over the medium term. Current reserve levels are underpinned by Government external financing and tourism receipts.
Annual headline inflation stood at 6.8 percent in September, lower than the 7.6 percent in August, but remains well above the -3.8 percent recorded a year earlier. Inflationary pressures continued to be driven by higher prices for food, fuel, kava and utilities. By year-end, inflation is expected to remain elevated and above 6.0 percent, reflecting persistently high global commodity prices and the effects of El Niño-related weather conditions, which are likely to increase domestic food prices, particularly for market items such as fruits and vegetables.
Mr. Ali added that the financial conditions remain conducive of economic activity, with ample liquidity of around $2.1 billion (as of 28/10). This has helped maintain a low-interest rate environment and encourage lending activity, with private sector credit recording strong growth, largely to private businesses and households.
The Governor concluded that ongoing geopolitical tensions, inflationary pressures, social and security concerns, and climate-related uncertainties pose downside risks to Fiji’s macroeconomic outlook.
The RBF will continue to closely monitor domestic and global developments and take necessary actions if required, to maintain price stability and safeguard foreign reserves.
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