The Reserve Bank of Fiji left its benchmark interest rate unchanged at a record low of 0.5 percent at its June 2019 meeting, saying the current monetary policy was appropriate to support the economy. Policymakers said that the economic growth is projected to 2.7 percent for this year driven by tourism and electricity, despite the recent weak outcomes in the mining and timber industries. The Committee noted that the annual inflation rate fell to 2.1 percent in May from 5.1 percent in May last year, mainly due to cost of food and non-alcoholic beverages, transport, and added that it is projected to be around 3.2 percent by the end of the year. 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 1.00 in 12 months time. In the long-term, the Fiji Interest Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.