BY NED GAGAHE
The Central Bank of Solomon Islands (CBSI) will maintain its accommodative monetary policy stance for the next six months, while introducing a new policy rate set at 1.5 percent to strengthen its monetary policy framework.
CBSI Governor Luke Forau announced the decision following the Bank’s Board meeting yesterday.
Mr Forau said the move aims to support ongoing economic recovery while keeping inflation below five percent.
“Today’s decisions support Solomon Islands’ ongoing economic recovery while safeguarding price stability. Introducing a policy rate improves the clarity of our stance and strengthens the transmission of monetary policy to the broader economy,” he said.
The newly introduced policy rate will serve as the main signal of the Bank’s monetary policy stance. It is expected to guide interest rates across the economy, including those offered by commercial banks on loans and savings.
Forau said the move will improve transparency and provide clearer forward guidance to businesses, households and financial institutions.
CBSI said that economic activity was strengthened in the second half of 2025, exceeding earlier expectations.
Growth was driven by strong mineral exports and improved performance across agriculture, fishing, communications, wholesale and retail trade, and tourism.
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