Consumption and investment data for the first few months of 2019 indicate softening in the economy - Ali

The Governor of the Reserve Bank of Fiji and Chairman of the Board, Ariff Ali states that preliminary data reveals that the economy grew faster in 2018 than earlier forecast however, consumption and investment data for the first few months of 2019 indicate softening in the economy.

Ali says the Fijian economy is projected to register ten years of consecutive economic expansion this year, the growth rate is biased downwards, owing to the moderation in recent domestic economic activity and the current slowdown in global economic growth.

The Governor highlighted that risks from higher global fuel price on inflation and balance of payments are being closely monitored.

He emphasised that immediate and medium‑term threats to the RBF’s twin objectives of price stability and adequate foreign reserves are contained.

Ali says inflation in March dropped to 4.0 percent from 5.1 percent in February. He says foreign reserves as at 25th April stood at $1.932 billion, sufficient to cover 4.1 months of retained imports. In addition, bank liquidity levels hovered at $343.7 million as at yesterday, sufficient to support further uptake in credit and economic activity.

The RBF Board also confirms that it has maintained the Overnight Policy Rate at 0.5 percent for lending to financial institutions following its monthly meeting yesterday.

Governor Ali reiterates that the current monetary policy stance is consistent with the current state and outlook of the Fijian economy and that the Reserve Bank will continue to closely evaluate international and domestic developments and align monetary policy where appropriate.

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