Papua New Guinea policy interest rate
The Bank of Papua New Guinea's official policy signalling rate, introduced in February 2001 under the Central Banking Act 2000. The KFR is a MONTHLY rate: it is decided at quarterly Monetary Policy Committee (MPC) meetings (March, June, September, December) and then carried forward unchanged in the intervening months, each month being published in BPNG's Kina Facility Rate table.
| Current value | 5 percent |
|---|---|
| In force from | 2025-09-01 |
| Official source | Bank of Papua New Guinea — Monetary Policy Statement, MPC Meeting 2/2026, Port Moresby, 3 June 2026: 'the Monetary Policy Committee (MPC) agreed to maintain the Kina Facility Rate (KFR) at 5.0 percent and continue the crawl-like arrangement in the exchange rate'; level corroborated by BPNG's official 'Changes in Kina Facility Rate' table, which shows 5.00% for every month from September 2025 through July 2026 |
| Last verified | 2026-07-23 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
The KFR has been 5.00% since September 2025, when the MPC RAISED it from 4.00% (announcement of 2 September 2025) and simultaneously cut the Cash Reserve Requirement from 10.0% to 9.0% and widened the margin between the KFR and BPNG's overnight repo/reverse-repo facilities to 2.0%. Held at 5.0% at all three subsequent meetings: 2 December 2025 (MPC 4/2025), 3 March 2026 (MPC 1/2026) and 3 June 2026 (MPC 2/2026 — latest decision as of confirmation); CRR held at 9.0%. TRAP: the KFR is NOT the operative transmission instrument in PNG. BPNG states explicitly and repeatedly that 'the exchange rate remains the nominal anchor for monetary policy' — interest-rate transmission is weak and the economy is highly import-dependent, so the crawl-like Kina depreciation, not the KFR, is what BPNG uses to anchor inflation expectations. Do not read KFR moves as an ordinary inflation-targeting reaction function. Second trap: the KFR is published as a monthly series, so BPNG's own table shows a value for every month even when no MPC met ('As issued in <month>'); only four of those twelve entries per year are actual decisions. The MPC itself is new — it was established in 2025 and held its inaugural meeting on 11 March 2025. Next decision expected September 2026. ACCESS: bankpng.gov.pg returns HTTP 403 to plain fetch/curl clients; the pages render normally in a real browser. Point any source-watcher at a browser-capable fetcher, not a bare HTTP client. Full KFR history table: https://www.bankpng.gov.pg/kina-facility-rates
Earlier values
| From | Value | Source |
|---|---|---|
| 2024-02-01 | 2 | BPNG 'Changes in Kina Facility Rate' table — 'February 2024 |
| 2024-05-01 | 2.5 | BPNG 'Changes in Kina Facility Rate' table — 'May 2024 Incre |
| 2024-08-01 | 3 | BPNG 'Changes in Kina Facility Rate' table — 'August 2024 In |
| 2024-09-01 | 4 | Bank of Papua New Guinea — Monetary Policy Announcement, 2 S |
Get it programmatically
curl https://ausref.dev/v1/pg/policy-rate
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://ausref.dev/v1/pg/policy-rate/history?from=2020-01-01
# Provenance: curl https://ausref.dev/provenance/pg/policy-rateOther Papua New Guinea series: VAT rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate · income tax rates