SUVA, Aug. 29 (Xinhua) -- The Reserve Bank of Fiji (RBF), the country's central bank, has kept the overnight policy rate on hold at 0.25 percent as inflation remains in negative territory.
RBF Governor Ariff Ali said that inflation fell to -0.4 percent in July due to lower food, fuel, and transport prices, according to a statement issued by the RBF on Friday.
He said recent tax cuts will help keep prices down in the near term.
Foreign reserves stand at 3.9 billion Fijian dollars (around 1.7 billion U.S. dollars), sufficient to cover six months of imports.
Consumption is strong, supported by higher vehicle sales, remittances, and lending, but investment remains constrained by high building material costs.
Tourism is recovering, with visitor arrivals rising for four consecutive months, particularly from Australia and the United States.
Ali warned that global trade and geopolitical risks could still affect Fiji's economic outlook, adding that the central bank would adjust policy if necessary. ■