The Reserve Bank of Fiji has warned the government it must cut take-home pay in the civil service to prevent any further interest rate rises.
The Reserve Bank's governor, Savenaca Narube, says the government needs to put in place measures that discourage import consumption, reduce take-home pay or reduce the extent of borrowing to finance the national budget.
Mr Narube says the Reserve Bank is concerned about the future because commodity exports like sugar, garments, agriculture, forestry and fishing are under performing.
Buta senior economist at the USP, Dr Biman Prasad, says measures to reduce take-home pay and consumption are short term.
Dr Prasad says the problems in Fiji's economy are more fundamental and structural and the country needs to put in place measures to increase commodity export
