The Reserve Bank of Vanuatu has decided to maintain the monetary policy measures introduced in 2024 as part of efforts to preserve economic stability in the face of continued global uncertainty.
The decision follows growing international pressures caused by major conflicts overseas, which continue to affect small economies such as Vanuatu.
Ensuring that the economy remains stable and continues to support the livelihoods of the people has become a major priority for governments and financial institutions.
As the country’s Central Bank, the Reserve Bank of Vanuatu is mandated under law to closely monitor and respond to situations that may affect the country’s financial system.
A recent assessment by the Bank showed that it is necessary to continue its current open market operations.
RBV Governor August Letlet says the Bank’s Board, during its recent meeting this month, agreed to maintain the same policy instruments implemented in 2024.
He says the policy rate will remain at 2.75% for the next few months, while the capital adequacy ratio stays at 12%, statutory reserve deposits at 5.5%, and the liquid asset ratio at 5%.
Mr Letlet says the policy stance remains accommodative, allowing the government and the wider economy to continue using available resources to support national development.
He says the main purpose of the policies introduced in 2024 was to slow inflation.
Before the measures were introduced, inflation averaged more than 11 percent, but this later fell to around 1.5 percent, and in 2025 dropped even further to 0.7 percent.
According to the Governor, the decision to maintain the current stance is aimed at ensuring economic activity continues to flow smoothly and allows government-led development programs to continue.
