MONTHLY KINA FACILITY RATE ANNOUNCEMENTS

The Central Bank introduced the Kina Facility Rate (KFR) in February 2001 as the official rate to indicate its stance of monetary policy. The KFR is a monthly rate and any changes to it should translate to changes in market interest rates. Changes to the KFR is based on assessment of economic fundamentals consistent with the overall objective of monetary policy of price stability in the economy. From January 2009, the KFR announcements by the Bank were:

2010
01 November Maintained at 7.00 %
04 December Maintained at 7.00 %

2011
03 January Maintained at 7.00 %
07 February Maintained at 7.00 %
07 March Maintained at 7.00 %
04 April Maintained at 7.00 %
02 May Maintained at 7.00 %
06 June Increased to 7.25 %
04 July Increased to 7.50 %
01 August Maintained at 7.50 %
05 September Increased to 7.75 %
03 October Maintained at 7.75 %
07 November Maintained at 7.75 %
05 December Maintained at 7.75 %

2012
02 January Maintained at 7.75 %
06 February Maintained at 7.75 %
05 March Maintained at 7.75 %
02 April Maintained at 7.75 %
07 May Maintained at 7.75 %
04 June Maintained at 7.75 %
02 July Maintained at 7.75 %
06 August Maintained at 7.75 %
03 September Reduced to 6.75 %
01 October Maintained at 6.75 %
05 November Maintained at 6.75 %
03 December Maintained at 6.75 %

2013
07 January Maintained at 6.75 %
04 February Maintained at 6.75 %
04 March Reduced to 6.25%
01 April Maintained at 6.25 %
06 May Maintained at 6.25 %
03 June Maintained at 6.25 %.
01 July Maintained at 6.25 %.
05 August Maintained at 6.25 %.
02 September Maintained at 6.25 %.

For details of the KFR, see Table 6.3 (S34) of the QEB. KFR announcements prior to January 2009 are reported in various bulletins starting with the March 2001 QEB.