The reduction of the KFR by the Central Bank will see reduction in market interest rates for the month of August.
This was possible after non-mineral private sector activities remained robust, and stability in the prices of goods and services (inflation) and the Kina value (exchange rate), among macroeconomic indicators.
This is the second reduction for the year after the Central Bank decreased the KFR from 6.2 to 6 percent following a pick-up in the non-mineral private sector, relative stability in the exchange rate, and fall in inflation.
