The National Reserve Bank Board of Directors approved to release its Monetary Policy Statement (MPS) for February 2023 which outlines the revised monetary policy stance following a review of Tonga’s economic performance and macroeconomic conditions.
The Reserve Bank has revised its current accommodative policy to focus on policy measures that adjust the money supply to manage any resurgence in prices over the next six months. At the same time, targeted measures will be adopted, including credit easing to support the vulnerable businesses and households to help economic recovery from the double shocks in 2022.
The Reserve Bank forecasts GDP growth for FY2022-23 at 3.4%, underpinned by the stronger growth anticipated for the tertiary and industry sectors. All sector growths are estimated to pick up momentum in 2023 contributing to the growth outlook of 3.7% in FY2023/24, despite the weaker global outlook. The official foreign reserves remained comfortable at T$911.1 million by the end of January 2023, equivalent to 14.2 months of imports coverage.
The financial system continued to remain sound supported by the banks’ strong capital position, adequate profitability, and high liquidity.
Inflation grew steeper and higher at 14% in September 2022 before cooling off in the last two months of 2022 where domestic inflation surprised on the upside and overtook imported inflation since August 2022. Business and households’ purchasing power are declining and the Reserve Bank stresses the importance of price stability in the short-term as it moves to strengthen the monetary policy framework that seeks to better control inflation, and build the resilience of the financial sector, promote macroeconomic stability and support economic growth recovery.
DOWNLOAD NRBT Monetary Policy Statement February 2023:
NRBTMPS28Feb2023.pdf
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Ngāue‘aki ‘e he Pangikē Pule′ ‘a e Fokotu‘utu‘u Ngāue Fakapa‘anga′ ke ta‘ota‘ofi ‘a e Hikihiki ‘i he Totongi Koloa′
Na′e tali ‘e he Poate ‘a e kau Talēkita ‘a e Pangikē Pule Fakafonua ‘o Tonga′ ke tuku atu ‘a e Fakamatala Fokotu‘utu‘u Ngāue Fakapa‘anga ki Fepueli 2023′, ‘a ia ‘oku hā atu ai ‘a e ngaahi liliu ki he fokotu‘utu‘u ngāue fakapa‘anga′ hili ‘a hono vakai‘i ‘a e ola mo e tu‘unga ‘o e ngaahi ngāue faka‘ekonōmika′.
Na‘e liliu ‘e he Pangikē Pule′ ‘a e fokotu‘utu‘u ngāue fakapa‘anga lolotonga′ ki ha ngaahi fokotu‘utu‘u ngāue fakapa‘anga ‘oku malava ke fakatonutonu ‘a e pa‘anga fakalūkufua ‘a e fonua′ ‘o fakataumu‘a ke malava ‘o mapule‘i ha toe hikihiki ma‘olunga ‘a e totongi koloa′ ‘i he mahina ‘e ono ka hoko′. ‘I he taimi tatau pē, ‘e fakahoko ‘a e ngaahi fokotu‘utu‘u ngāue fakapa‘anga kehe ‘o hangē ko hono fakafaingofua’i ‘a e nō ke tokoni‘i ‘a e kakai mo e ngaahi pisinisi ‘oku laveangofua′ koe’uhi ke tokoni ki he fakaakeake faka‘ekonōmika mei he ongo fakatamaki ne hoko ‘i he 2022′.
Na‘e fakafuofua ‘e he Pangikē Pule′ ‘e peseti ‘e 3.4 ‘a e tupu faka‘ekonōmika ‘i he ta‘u fakapa‘anga 2022-23, ‘o fakatefito ‘i he fakafuofua ‘e mālohi ange ‘a e tupu ‘i he tafa‘aki ki he ngaahi ngāue′ pea mo e tafaka‘aki ‘o e fakatupu koloa′. ‘Oku fakafuofua ‘e mālohi ange ‘a e ngāue ‘i he ngaahi sekitoa′ kotoa ‘i he 2023 ‘o tokoni ia ki ha tupu faka‘ekonōmika peseti ‘e 3.7 ‘i he ta‘u fakapa‘anga 2023-24, neongo ‘oku holo ‘a e fakafuofua ki he tupu fakamamani lahi′. ‘I Sanuali 2023, na‘e ‘i he tu‘unga fakafiemālie pē ‘a e pa‘anga talifaki ‘i muli ‘a e Pule‘anga′ ‘o fe‘unga mo e T$911.1 miliona. Na‘e fe‘unga ‘a e tu‘unga ‘o e pa’anga talifaki ́ pea mo e māhina ‘e 14.2 ‘o e koloa mo e ngaahi ngāue hū mai mei muli ́.
‘Oku tokamalie pē ‘a e tafa‘aki fakapa‘anga′ fakalukufua ‘o makatu‘unga mei he tu‘unga lelei ‘a e sino’i pa’anga tefito (capital), fe‘unga ‘a e tupu fakapa‘anga ́ (profitability), pea mo e ma‘olunga ‘a e pa’anga ngāue (liquidity) ‘a e ngaahi pangikē.
Na′e tupu ma‘olunga ‘a e hikihiki ‘i he totongi koloa fakalūkufua ‘o a’u ki he peseti ‘e 14 ‘i Sepitema 2022 kimu‘a pea toki holo ‘i he ongo māhina faka‘osi ‘o e 2022′ ‘a ia ne faka’ohovale ‘a e ma‘olunga ange hikihiki ‘i he totongi koloa′ fakalotofonua′ ‘i he totongi koloa hū mai mei tu‘apule‘anga′ talu mei ‘Aokosi 2022′. ‘Oku ne holoki leva ‘a e ivi fakatau ‘a e ngaahi pisinisi′ mo e kakai′, pea ‘oku fakamamafa‘i ai ‘e he Pangikē Pule′ ‘a e mahu‘inga hono ta‘ota‘ofi ‘a e hikihiki ‘i he tu‘unga ‘o e totongi koloa′ ‘i he kaha‘u vave mai′ ‘i he’ene ngāue atu ki hono fakaivia ‘a e fa‘unga ‘o e fokotu‘utu‘u ngāue fakapa‘anga′ ‘a ia ‘e malava ke ta’ota’ofi ‘a e hikihiki ‘i he tu‘unga ‘o e totongi koloa′, langa hake ha sekitoa fakapa′anga ‘oku tu‘uloa, tokoni‘i ‘a e fakaakeake faka‘ekonōmika′ pea mo faka‘ai‘ai ‘a e malu e tu'unga faka‘ekonōmika fakalukufua′.
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