National Bank of Georgia again keeps refinancing rate at 8%
TBILISI. Sept 10 (Interfax) - The Monetary Policy Committee of the National Bank of Georgia (NBG) kept the monetary policy rate (refinancing rate) at 8% per annum for the sixth time since the beginning of the year on Wednesday.
"As a result of macroeconomic analysis and assessment of existing risks, the Monetary Policy Committee considered it optimal to maintain a moderately tight monetary policy and left the monetary policy rate unchanged at 8%. Further changes to the monetary policy rate will depend on updated macroeconomic forecast scenarios and risk analysis," the NBG said.
The regulator's decision was made amid rising inflation in Georgia, which reached 4.6% year-on-year in August. Core inflation, which excludes highly volatile prices for food, energy and cigarettes from the consumer basket, remains below the target of 3% and was 2.8% last month, the Central Bank said.
The NBG confirmed its inflation forecast for 2025 at 3.8%, believing that the current inflation dynamics are mainly due to temporary supply factors. In addition, it noted a slowdown in economic activity and signs of its gradual return to the long-term trend, which eases demand pressure on prices.
Given these factors, the NBG "continues to take a cautious approach to ensure that the current price increase does not affect long-term inflation expectations," it said.
Among external inflationary risks, the regulator highlighted the volatility of U.S. tariff policy and the escalation of the geopolitical situation in the Middle East. On the other hand, the expected decline in raw materials prices on the international food market and the weakening of the dollar could reduce imported inflation, it said.
The next meeting of the Monetary Policy Committee will be held on November 5, 2025.
In 2024, the National Bank of Georgia lowered the refinancing rate amid slowing inflation at the beginning of the year by 0.5 percentage points (p.p.) in January, by 0.75 p.p. in mid-March and by 0.25 p.p. from May 22. The rate has been maintained at 8% since June 19 last year.
