Press Release No. : 20/2025
Date : 30 October 2025
Press Release No 20 – RBF Maintains Monetary Policy Stance
The Reserve Bank of Fiji (RBF) Board has maintained the Overnight Policy Rate (OPR) at 0.25 percent, at its monthly meeting on 30 October 2025.
Governor and Chairman of the Board, Mr Ariff Ali, stated that the RBF’s monetary policy objectives of ensuring price stability and maintaining an adequate level of foreign reserves remain intact. Annual headline inflation eased further to -3.8 percent in September from -3.5 percent in August and 3.6 percent in September 2024, reflecting the national budget measures which became effective from August 2025. Lower prices were observed mainly for food and non-alcoholic beverages, transport, and cooking gas and other fuel categories which outweighed the annual price increases in alcoholic beverages, narcotics & tobacco, miscellaneous goods & services and restaurants & hotels. Foreign reserves are around $3.9 billion (30/10), sufficient to cover 6.1 months of retained imports of goods and services and are projected to remain adequate in the medium term.
On the domestic front, sectoral performances generally registered positive outcomes, and the economy is on track to record its fourth year of consecutive growth. Visitor arrivals noted a marginal growth of 0.3 percent to 735,154 in the year to September, driven by higher arrivals from the United States, Pacific Island Countries, Europe and the United Kingdom. However, arrivals from Fiji’s two key source markets, Australia and New Zealand, including Asia noted declines. Additionally, timber and electricity production grew in the review period while gold ore, mineral water and sugar production declined on account of industry specific challenges.
Moreover, consumption activity remains buoyant, supported by higher incomes and inward remittances, as reflected by positive trends in partial indicators including consumption-related loans, net VAT collections, total vehicle registrations and electricity demand. The retail sales outlook conducted through the RBF’s August Retail Sales Survey remains positive, with expectations of improved sales in both the current year and in 2026. Investment activity also indicated signs of improvement, as reflected in the increased uptake of construction projects, moderation in building material prices in the third quarter and higher construction-related imports. Furthermore, the RBF’s August Business Expectations Survey concluded that most businesses anticipate general business conditions to remain stable over the next 6 to 12 months. Accordingly, intentions to invest in plant & machinery as well as in buildings in the medium term improved compared to the February 2025 survey. Labour market conditions continued to ease, reflected by declines in partial indicators including resident departures, temporary migration for labour mobility schemes, foreign labour intake and advertised job vacancies up to September.
Governor Ali added that the RBF’s accommodative monetary policy stance has kept lending rates low, aiding the growth in private sector credit (9.6% in September). Currently, liquidity in the banking system is around $2.3 billion (29/10) and projected to remain at similar levels in the short to medium term.
The Chairman, however, acknowledged that global risks such as the rising tension between the US and China, and the imposition of industry specific tariffs could affect the domestic economic conditions going forward. The approaching cyclone season further elevates downside risks for the domestic economy. The RBF will continue to closely monitor both international and domestic developments and align monetary policy accordingly.
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