National Reserve Bank of Tonga

Financial Sector Meeting on Monetary Policy and Interest Rates

The National Reserve Bank of Tonga discussed with the financial sector its August 2024 monetary policy, interest rates and improving access to finance for underserved sectors. The event took place at Fa’onelua Convention Centre on 20th September 2024, gathering key stakeholders from the financial sector to discuss actionable strategies that can positively impact our nation’s economic landscape.

The meeting follows the NRBT's release of its Monetary Policy Statement for August 2024, which outlined the bank’s intentions over the next six months. Tonga's economic growth for FY2024 has been revised downward to 1.6%, down from the previously projected 2.2%. This adjustment highlights the ongoing challenges faced by both the primary and secondary sectors, following the double diasters experienced throughout 2022 which resulted in lackluster growth for both FY2022 and FY2023. It underscores the urgent need to address issues within the financial sector that are hindering effective credit intermediation, which is crucial to supporting the private sector's needs.

A key highlight of the meeting was the insightful presentation by the IMF Resident Representative for the Pacific Island Countries, who addressed "Issues in the Banking System of Tonga". This presentation provided valuable insights into the current banking landscape and fostered critical discussions among participants regarding the necessary reforms and interventions.
The NRBT welcomes the contributions of the sector, the licensed banks, small medium enterprises, the Tonga Chambers of Commerce and Industries, the Government economic ministries commitment to fostering a more inclusive financial environment.

Enquiries

National Reserve Bank of Tonga
Fasi mo e Afi
NUKU'ALOFA

Telephone: (676) 24057
Fax: (676) 24201
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