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Reserve Bank of Fiji keeps overnight policy rate

The Reserve Bank of Fiji decided to maintain the overnight policy rate at 0.5% to encourage investment and further strengthen growth in the economy.

The central bank said consumption and investment activity have remained buoyant despite setbacks from the natural disasters that hit Fiji in December 2016. The central bank attributed the positive trend to supportive fiscal measures and accommodative monetary policy settings.

Meanwhile, inflation fell to 3.9% in December 2016 from 4.3% in November 2016. The central bank projects year-end inflation at around 2.5%.