The Reserve Bank of Australia (RBA) has increased the cash rate target by 25 basis points to 4.60 per cent . Fijian businessman Div Damodar has said that because Australia is Fiji’s primary economic partner, the decision has direct consequences for Fiji’s local economy. Damodar provided a breakdown of how key Fijian sectors could be affected, what needs to be done to mitigate the risks, and what could happen if they fail to adapt. “Higher mortgage repayments mean Australian households have less disposable income. Australian families may trim holiday budgets, choose shorter stays, or defer overseas travel altogether, reducing tourist arrivals and resort spending in Fiji.
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