The Reserve Bank of Fiji has decided not to increase the official interest rate again, after two increases of 1% earlier this year.
The bank's governor, Savenaca Narube, says the impact of the earlier rises and the rise in the statutory deposits of commercial banks is still working itself out in the financial market and the bank is monitoring these developments.
But the Fiji Times quotes the Labour Party leader, Mahendra Chaudhry, as saying the decision to raise the interest rates in the first place was not the prescription for an ailing economy.
He says the likely effect would be to further dampen economic growth and exacerbate recessionary trends.
