Fiscal policy remains unaltered:Fiji govt

SUVA: Fiji’s central bank has decided to leave its current monetary policy stance unchanged as key indicators in the local economy show signs of improvement, Fiji Live reports.
The board of the Reserve Bank of Fiji (RBF) noted that while recovery was expected next year, there were clear signs of imports slowing thus resulting in stability in the level of foreign reserves.
RBF governor Savenaca Narube said credit growth continued to slow as a result of the economic slowdown and the effects of the bank’s various policies currently in place.
In addition, he said the 2007 year-end inflation had now been revised downwards to 3.5%, on account of an easing in domestic price pressures.
However, he added the possibility of higher oil prices continued to pose risks both to inflation and the foreign reserves level.
“The Reserve Bank has allowed liquidity in the financial system to rise which has led to lower interest rates,” Narube said.
He said the bank would continue to closely monitor economic and financial developments and ensure that monetary policy is responsive to such developments in the economy. – PNS