The Reserve Bank of Fiji has kept its Overnight Policy Rate at 0.25 percent, saying the economy is slowing while inflation remains elevated due to rising import costs.
Governor Ariff Ali said inflation surged to 6.1 percent in June, driven mainly by higher fuel, gas and electricity prices.
These costs alone contributed around 4.5 percentage points to June’s inflation rate.
The Bank warned Fiji remains vulnerable to global oil price shocks, particularly following recent tensions between the United States and Iran that pushed oil prices sharply higher.
With oil prices expected to keep domestic fuel, transport and production costs elevated, the Reserve Bank forecasts inflation will remain above 6 percent for the rest of the year, despite leaving its key interest rate unchanged.
