The banking system remained sound with excess liquidity as indicated by the banks’ deposits at the Reserve Bank at T$178.55 million and a 17.1% annual credit growth supported by the lower weighted average lending rate at 7.89% compared to the previous year.
The Governor, Mr. Sione Ngongo Kioa, announced that in light of the strong economic fundamentals and the positive outlook, the Reserve Bank Board approved changes to three of its policy measures to reflect the current economic fundamentals, encourage the utilisation of the excess liquidity in the banking system, increase lending in order to support economic growth, and strengthen the monetary policy transmission mechanism.
Governor Kioa also added that the commercial banks have been instructed to remove the fees charged for the implementation of the foreign exchange levy with effect from the 3rd January 2017 to assist in reducing the cost of overseas transactions.
The changes to the policy measures were to reduce the excess liquidity by increasing the Statutory Reserve Deposit (SRD) requirement from 5% to 10%; extend the timeline for the banks to achieve the loans to deposit ratio minimum requirement of 80% from December 2016 to June 2017 to encourage banks to lend prudently; ease the Foreign Exchange Control documentary requirements for outward payments to support an enabling business environment while the foreign reserves are at very high levels.
The current Monetary Policy stance is maintained with the following monetary policy measures:
- maintain the monetary policy rate at 0% (zero interest rate policy);
- extend the timeline for compliance with the minimum loans/deposit ratio of 80% to June 2017;
- increase the Statutory Reserve Deposit ratio from 5% to 10%, to be effective in the banks’ balance sheet for July 2017;
- maintain the inflation reference rate at 5%; and
- ease the Exchange Control requirements to be effective immediately.
The NRBT remains vigilant and closely monitors developments on inflation, economic activity as well as credit growth, and the level of foreign reserves, for early signs of vulnerabilities.
‘I he fakataha ko ia ‘a e Poate ‘o e kau Talekita e Pangikē Pulé Fakafonua á Tonga, ‘i he ‘aho 2 ‘o Fepueli 2017, na’a nau vakai ai ki he ngaahi fakamatala ‘oku ne fakahā ‘a e tupulaki ‘a e tu’unga faka’ekonōmika fakalotofonua. Ko e tupu faka’ekonomika ‘a e fonua (growth in real GDP) ‘i he 2016/17 ‘oku fakafuofua ia ki he peseti ‘e 3.6. Ko e lahi ‘o e pa’anga talifaki ‘i muli (foreign reserves), ko e T$378.8 miliona, ‘a ia ‘oku fakatatau ia mo e mahu’inga e koloa hu mai mei muli (imports) ko e mahina ‘e 9.8.
Na’e fe’unga mo e peseti ‘e 6.1 ‘a e hikihiki ‘o e totongi koloa fakata’u, pea ‘oku kaunga ki heni e uesia mei he ngaahi koloa na’e hiki hono tute ‘i Siulai 2016, ka ‘oku fakafuofua ‘e holo e hikihiki e totongi koloa ki he peseti ‘e 4 ‘i he kamata’anga e ta’u fakapa’anga 2017/18.
Na’e kei malohi mo faifatongia lelei pe ‘a e ngaahi pangike fakakomesiale pea na’e kei fu’u lahi pe e ngaahi pa’anga ngaue (excess liquidity) he kuo a’u ‘a e tipositi ‘a e ngaahi pangike ‘oku ‘i he Pangike Pule ki he T$178.55 miliona. Kuo hiki hake e lahi e ngaahi no mei he ngaahi pangike ‘aki ‘a e peseti ‘e 17.1, ‘a ia na’e tokoni ki heni ‘a e holo ‘a e totongi tupu ki he ngaahi nō, ki he peseti ‘e 7.89, ‘i hono fakatatau ki he ta’u kuo’osi.
Na’e fakaha ‘e he Kovana ‘o e Pangikē Pulé, Sione Ngongo Kioa, tupu mei he lelei ange ‘a e tu’unga faka’ekonōmika he taimi ni pea mo e sio ki he kaha’u, kuo tali ai ‘e he Poate ‘o e Pangikē Pulé ke fakahoko e liliu ki he ngaahi tu’utu’uni fakangāue, ke hoa mo e tu’unga faka’ekonōmika lolotonga pea pehe ki he vakai ki he kaha’u.
Na’e toe pehee ‘e Kovana Kioa kuo ‘osi tu’utu’uni ki he ngaahi pangikē fakakomēsiale ke to’o ‘a e ngaahi totongi na’a nau hilifaki ki he ngaahi fe’ave’aki pa’anga mo muli talu mei hono kamata ngaue’aki ko ia e ‘inasi fakapule’anga ‘i he fetongi pa’anga muli (foreign exchange levy), ‘o kamata mei he ‘aho 3 ‘o Sanuali 2017, ke tokoni ke toe ma’ama’a ange ‘a e totongi ki he ngaahi fe’ave’aki pa’anga mo muli.
Pea ko e tu’utu’uni eni ‘a e Poate ‘a e Pangike Pule ki he ngaahi fokotu’utu’u ngaue fakapa’anga:
a. Ke kei taétotongi tupu pe ‘a e pa’anga ngāue ‘a e ngaahi pangiké ‘oku fakahu ‘i he Pangike Pule;
e. Ke fakaloloa atu ki Sune 2017 ‘a e taimi kuo tuku atu ki he ngaahi pangike ke a’usia ‘a e ma’ulalo taha ‘o e peseti ‘o e ngaahi nō, ‘o fakahoa ki he lahi ‘o ‘enau fakahū pa’angá
(loan/deposit ratio) ki he peseti ‘e 80;
f. Ke hiki hake ‘a e lahi ‘o e pa’anga mohe ‘a e ngaahi pangiké, oku fiema’u ke tauhi ‘i he Pangikē Pulé (Statutory Reserve Deposit) mei he pēseti ‘e 5, ki he pēseti ‘e 10, pea ke
kamata eni ‘i ‘aho 1 Siulai 2017;
h. Ke tu’uma’u pē ‘a e faka’amu ki he hikihiki e totongi ‘o e ngaahi koloá (inflation reference rate) ‘i he pēseti ‘e 5 ‘i he ta’u; pea
i. Ke toe fakafaingofua’i ange e talafi pa’anga ki tu’apule’nga ‘o kamata eni mei he ‘aho ni, 2 Fepueli 2017.
