Fiji holds rate, will change if challenge to twin targets

    Fiji's central bank held its benchmark Overnight Policy Rate (OPR) steady at 0.5 percent, saying the outlook for foreign reserves and inflation remain stable at the moment but it would "re-align monetary policy if in its assessment there are challenges to its twin objectives."
    The Reserve Bank of Fiji, which earlier today revised upwards its 2014 economic growth forecast to 3.8 percent from a previous 3.0 percent, has held its OPR rate steady since November 2011.
    In March Fiji's inflation rate fell to minus 0.2 percent from 0.2 percent in February, largely due to basis effects and the impact of free primary and secondary education that was built into consumer prices  last month, the bank said.
    As of April 24, Fiji's foreign reserves were US$ 1.652 billion, or enough to cover 4.4 months of imports.
    In 2013 Fiji's Gross Domestic Product expanded by 3.6 percent, up from 2.2 percent in 2012.

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