RBF to maintain OPR at 0.25pc

RBF to maintain OPR at 0.25pc

Fiji Times 30 April 2021 – The Reserve Bank of Fiji (RBF) Board will maintain the overnight policy rate at 0.25 per cent.

This, according to a statement from RBF governor and board chairman Ariff Ali, who said the decision to maintain an accommodative stance was based on the current economic environment and the outlook for the twin monetary policy objectives of the RBF.

He said the relatively stronger yet divergent economic recovery anticipated for the global economy for this year and next was projected by the International Monetary Fund (IMF) in its April World Economic Outlook report.

Mr Ali added the risks to the global economy would remain, with policy advice from the IMF to focus on prioritising healthcare spending, maintaining targeted fiscal support and accommodative monetary policy while tracking financial stability risks.

It was stated the domestic economic activity remained weak because of the lacklustre output in key sectors and a contraction in consumption as well as an investment activity.

Weak labour market conditions were stated to persist with ongoing support from the Fiji National Provident Fund and the Government via the COVID-19 unemployment scheme.