The positive outlook of the economy, which is supported by the latest Reserve Bank of Fiji (RBF) retail sales and business expectation survey, is pointing towards improved prospects for consumption and investment in the coming months.
This, according to the Reserve Bank of Fiji acting board chairman Robin Yarrow, meant the Fiji economy was likely to grow higher than the 3 per cent estimated prior to the announcement of the 2014 National Budget.
“Aggregate demand continues to strengthen given the buoyant performance of consumption and investment activity,” Yarrow said.
“Domestic economic conditions remain positive with improved performances envisaged for most key sectors of the economy this year.”
He said the central bank’s twin policy objectives of low inflation and adequate foreign reserves were at stable levels, adding the accommodative monetary policy stance remained appropriate.
Meanwhile, Yarrow said the board had agreed to maintain the overnight policy rate at 0.5 per cent during its monthly meeting last week..
SUVA, (FIJI TIMES)