The National Reserve Bank of Tonga (NRBT) released its Monetary Policy Statement (MPS) for February 2025, following approval by the Board of Directors. The MPS states that since internal and external stability are expected to be maintained in the near-term, the NRBT will continue its accommodative monetary policy stance over the next six months to promote growth, while gradually strengthening its policy tools’ influence on monetary conditions, and tackle access to finance barriers.
- Monetary Policy Statement: February 2025 PDF • 2,181 KB DOWNLOAD THE FULL STATEMENT
The Statutory Reserve Deposit (SRD) ratio will remain at 15 percent. Over the next six months, the NRBT will introduce a new policy rate, transitioning from a floor rate to adopting a standard mid-rate as its policy rate. This change will provide a clearer indication of the overnight interest rate. Additionally, the interest rate on banks’ Exchange Settlement Accounts (ESA) at the Reserve Bank will continue to be 0 percent. The NRBT will also implement the issuance of NRBT Notes to mop up the excess liquidity to strengthen the transmission channel.
Governor Tatafu Moeaki stated, that “The new MPS commits to modernizing policy instruments for the NRBT to be more effective in influencing market interest rates and inflation. We will also review the currency basket composition to be more stable and minimize pass-through effect on inflation. The weak monetary conditions requires closer coordination with the Government as the driver for fiscal policy, to be more effective in achieving key macroeconomic stability outcomes such as price stability to address the supply side gaps, and promoting the domestic sector’s stability.”
The NRBT projects a gradual increase in inflation, but still remain below the 5% reference rate in the near term, however risks are tilted to the upside. Positive economic recovery is projected to continue in the next fiscal year. These developments and outlook allows the NRBT some policy space to mop up the excess liquidity and introduce market-based tools that will enhance monetary policy interventions.
Fokotu’utu’u Fakapa’anga Mei Fepueli 2025, Fakamālohia ke a’usia ‘a e ngaahi taumu’a ngāue ‘a e Pangikē Pule
Na’e tuku atu ‘e he Pangikē Pule Fakafonua ‘a Tonga΄ ‘a e Fakamatala Fokotu‘utu‘u Ngāue Fakapa’anga (MPS) ki Fepueli 2025, hili hono tali ‘e he Poate ‘a e kau Talēkita΄. ‘Oku fokotu’u he MPS Fepueli 2025, makatu’unga ‘i he kei tokamālie pē ‘a e tu’unga fakalotofonua΄ mo fakatu’apule’anga΄ ‘i he kaha’u vave mai΄, ‘e kei hoko atu pē ‘a e kei faka’ai’ai pē ‘a e tupu faka’ekonōmika΄, mo fakamālohia e ngaahi founga ‘oku fakahoko ‘aki ‘e he Pangike Pule΄ ‘a e ngāue fakapa’anga΄ ke ola lelei, mo fakafaingofua’i e nō pa’anga΄.
‘E tu’uma’u pē ‘a e tu’utu’uni ke fakahū mei he ngaahi Pangikee΄ 'o tauhi talifaki 'i he Pangikē Pule΄ (SRD), ‘i he peseti ‘e 15. ‘I he māhina ‘e ono ka hoko mai΄, ‘e fokotu’u atu ‘e he Pangikē Pule΄ ha totongi tupu fo’ou ke hoko ko e faka’ilonga ‘o ‘ene taumu’a fakapa’anga (policy rate), ‘o fetongi mei he totongi tupu ma’ulalo taha΄ (floor rate), ki he totongi tupu fo’ou ‘a ia ko e totongi tupu angamaheni fakamāmani lahi ‘a ia ‘oku tō loto pē ‘i he vaha’a ‘o e totongi tupu ma’ulalo taha΄ mo e totongi tupu ma’olunga taha΄ (mid-rate). Koe liliu ko eni´ ke toe mahino ange ‘a e tu’unga ‘oku fiema’u ‘e he Pangikē Pule΄ ke ‘i ai ‘a e totongi tupu faka’aho ‘i he māketi΄. ‘E kei hoko atu pē foki ‘a e ‘ikai ha totongi tupu (0%) ‘i he ngaahi ‘akauni ngāue 'a e ngaahi pangikee΄ (ESA). ‘E kamata ngāue atu foki ‘a e Pangikē Pule΄ ki hono fakatau atu ‘ene ngaahi nouti΄ (NRBT notes), ke faka’aonga’i ‘a e hulu 'i he pa'anga nō atu 'a e ngaahi pangikee΄ (excess liquidity), koe’uhi ke tokoni ki he ngāue fakapa’anga ‘i he māketi΄.
‘I he fakamatala ‘a Kōvana Tatafu Moeaki΄, “‘Oku tokanga lahi ‘a e MPS fo’ou΄ ki hono fakalelei’i ‘a e ngaahi founga ngāue΄ koe’uhi ke malava ‘a e Pangikē Pule΄ ’o fakahoko lelei ange hono fatongia ki hono tataki ‘a e ngaahi totongi tupu ‘i he māketi΄, pea mei ai ki he totongi koloa fakalukufua΄, ‘o fakatatau ki he’ene ngaahi taumu’a ngāue΄. ‘E fakahoko mo e ngāue ki he fa’unga kato ‘oku fika’i mei ai ‘a e mālohi ‘etau Pa’anga Tonga΄ ki hono fakafetongi pa’anga muli΄, ke fakapapau’i ‘oku tokoni ki hono makupusi ‘a e hikihiki ‘o e totongi koloa mei muli΄. Koe’uhi ko e te’eki ke longomo’ui e maketi fakapa’anga΄, ‘oku fiema’u leva ke fakafekau’aki vāofi ‘a e ngaahi fokotu’utu’u fakapa’anga΄ mo e fokotu’utu’u patiseti ‘a e Pule’anga΄ (fiscal policy). ‘E tokoni eni ke toe mālohi, ola lelei mo tolonga ‘a e tupu faka’ekonōmika΄, pea si’isi’i ‘a e fetō’aki ‘i he ngaahi totongi koloa΄, a’usia ha tu’unga fe’unga ‘i he lahi ‘o e koloa ‘oku fakatupu΄ ke feau ‘a e fiema’u koloa΄, pea longomo’ui ‘a e ngaahi sekitoa fakalotofonua΄ ΄.
‘Oku fakafuofua ‘e he Pangikē Pule΄ ‘e toe kake māmālie ‘a e hikihiki ‘o e ngaahi totongi koloa fakalukufua΄ ki ‘olunga ‘i he kaha’u vave mai΄, kā ‘e kei ma’ulalo pē ‘i he tu’unga ‘avalisi ko e peseti ‘e nima. Neongo eni, ‘oku lahi pē mo e ngaahi makatu’unga ke toe hikihiki lahi ai ki ‘olunga. ‘Oku ‘amanaki ‘e hoko atu pē ‘a e fakaakeake ‘a e tupu faka‘ekonōmika΄ ‘i he ta’u fakapa’anga ka hoko΄. Makatu’unga ‘i he fakafiemālie ‘a e ngaahi ola fakamuimui taha kuo ma’u΄ mo e ngaahi fakafuofua ki he kaha’u΄, ‘oku ‘i ai leva ‘a e faingamālie ki he Pangikē Pule΄ ke ne holoki ‘a e hulu ‘i he pa’anga ngāue ‘a e ngaahi pangikee´ pea fokotu’u mo ha ngaahi me’angāue fakapa’anga fo’ou fakatatau ki he māketi΄ ke fakaivia ‘aki e ngaahi fokotu’utu’u ngāue fakapa’anga΄.
