Monetary policy

Tonga’s central bank maintains current monetary policy measures

The Board of Directors of the National Reserve Bank of Tonga decided to continue with the current measures at its meeting last week.

According to central bank, this is to encourage utilization of the excess liquidity in the banking system, through further lending to growth sectors and to support the economy from the impacts of COVID-19.

The monetary policy rate will be maintained at 0% (zero interest rate policy), minimum loans/deposit ratio of 80%, Statutory Reserve Deposit ratio at 10%.

Other measures are: