MONETARY POLICY STANCE REMAINS UNCHANGED

The Reserve Bank of Fiji (RBF) Board at its monthly meeting on 30 July agreed to maintain the
Overnight Policy Rate (OPR) at 0.50 percent.
The Governor and Chairman of the Board, Mr Barry Whiteside stated that ?on the international
front, the expected pick-up in global growth has not fully materialised. As a result, Fiji?s trading
partners? recent growth outcomes have remained modest, with external inflationary pressures
remaining subdued.?
Mr Whiteside noted that domestically, improved sectoral outcomes for tourism and gold and
buoyant demand conditions are indicative of Fiji?s currently strong growth outlook. Improved
business confidence as seen in higher recruitment intentions, combined with continued credit
demand and ongoing construction and infrastructure projects confirm the robust investment activity
to date. While potentially lower Government expenditure and weather-related impact on cane
output present downside risks to this outlook, on balance, the Fijian economy is on track to achieve
the 4.3 percent growth projected for this year.
The Governor also highlighted that the twin objectives of monetary policy remained intact, with the
June inflation rate at a low 0.8 percent and the 30 July 2015 foreign reserves level adequate at
$1,988.6 million (5.0 months of retained imports of goods and non-factor services cover).
The Chairman concluded that, ?the Reserve Bank of Fiji will continue to monitor global and
domestic economic developments and align monetary policy accordingly.?
RESERVE BANK OF FIJI