The Reserve Bank of Fiji held its benchmark interest rate at 0.5 percent during its September meeting, saying that the moderation in the global and domestic economy and comfortable level of inflation and foreign reserves warrants the continuation of the accommodative monetary policy stance. Policymakers noted that latest indicators point towards a slowdown in the domestic economy due to weak sugar, gold and timber output. Meantime, higher tourism earnings and strong remittance inflows have further strengthened Fiji’s external position. Year-end inflation is now expected to be 2.0 percent, a downward revision from the 3.0 percent projected earlier. The central bank reiterated that it will continue to closely monitor international and domestic developments and align monetary policy accordingly. Interest Rate in Fiji averaged 0.52 percent from 2010 until 2019, reaching an all time high of 2.50 percent in December of 2010 and a record low of 0.50 percent in January of 2011.
Interest Rate in Fiji is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Fiji to stand at 0.50 in 12 months time. In the long-term, the Fiji Interest Rate is projected to trend around 1.00 percent in 2020, according to our econometric models.