Tonga holds rates amid ongoing monetary policy reform
Pacific island’s central bank says inflation is running hot due to external price shocks
Tonga’s central bank has opted to hold policy rates for the next six months, as external conditions have caused inflation in the Pacific island nation to spike.
The National Reserve Bank of Tonga’s board of directors said today (August 28) that it would maintain a “neutral monetary policy stance” for the next six months by holding rates at 2%, according to a statement. This came after headline inflation spiked to 9.3% in July, which the bank said was “well above” its 5% target.
“This increase is
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