4 Apr 2011

Fiji central bank maintains two percent policy interest rate

4:33 pm on 4 April 2011

Fiji's central bank has decided to maintain its current overnight policy interest rate at two percent.

It's also announced that Fiji's foreign reserves stood at a higher than expected 700 million US dollars at the end of the financial year.

Fiji's Reserve Bank Acting Governor Barry Whiteside says Fiji's domestic economic picture has been mixed, highlighting subdued construction activity and a slight growth in consumption.

But he says investments in mining, fishing, forestry and mineral water industries are expected to strengthen in coming months.

Mr Whiteside says while the global recovery's expected to continue this year, the outlook for Fiji's foreign reserves and inflation may be threatened by higher oil and food prices.

The central bank chief also warned of dampened export demand and fewer tourists from Fiji's major trading partners Japan, New Zealand and Australia which have been struck by disaster in recent months.