The Bank of Papua New Guinea introduced the Kina Facility Rate (KFR) in February 2001, as an official rate to indicate its stance of monetary policy. The KFR is a monthly rate and any changes to it should translate to market interest rates. Changes to the KFR are based on assessment of economic fundamentals in the economy.
The initial KFR was set at 15.50 percent in February 2001, which was based around the 28 days treasury bill weighted average rate.