Fiji's central bank maintained its Overnight Policy Rate at 0.5 percent, steady since November 2011, saying the current policy stance "was appropriate as the outlook for foreign reserves and inflation is comfortable."
Barry Whiteside, governor of the Reserve Bank of Fiji, added in a statement issued today after a monthly board on meeting on March 28 that the accommodative policy stance would be re-aligned if there are challenges to the bank's twin core objectives of foreign reserves and inflation.
Inflation in Fiji fell to 0.2 percent in February, the lowest since April 2009, from 2.3 percent in January. The central bank attributed to drop in inflation to free primary and secondary education that was announced in the 2014 national budget.
Fiji's foreign reserves were estimated at US$1.705 billion as of March 28, enough for 4.5 months of goods, and down from $1.763 billion as of Jan. 30.