Fiji’s central bank held the overnight policy rate steady at 0.25%, buoyed by the economy’s strong recovery, particularly in the tourism sector. This recovery has spurred job creation and lifted incomes, further supported by a record USD 1.25 bln in remittances. Despite a 5.1% inflation rate in December due to VAT and tariff increases, inflation is projected to moderate to 3.0% by the end of 2024. Foreign reserves stood at USD 3.3 bln as of January 31, adequately covering 5.3 months of retained imports of goods and services.