March 12, 2013

Liquidity remains high: RBF

07:09 Today (March 12, 2013)
Report by: Rita Narayan

Liquidity remains high in the banking market despite an increase in lending.

The Reserve Bank of Fiji February Economic Review states, liquidity levels are at 573 million dollars as at 28th February.

Consistent with this, commercial banks’ interest rates on lending together with rates in the money and capital markets, remain on a downward trend.

With very little risk envisaged from the buildup in credit by the financial institutions, there is no immediate demand-side risk to the domestic inflation rate.

However, domestic inflation remains largely exposed to supply-side factors given our heavy reliance on imported products.

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