Nat'l Bank of Georgia lowers refi rate to 6.5%
TBILISI. Jan 19 (Interfax) - The National Bank of Georgia is lowering its key refinancing rate a quarter of a percent to 6.50% effective January 19, the bank said.
The bank said inflation, which was 2% in annual terms in December, was expected to remain low in H1 2012 but that the situation could alter mid-year.
It also said the trade deficit was widening, due mainly to import growth, and that the national currency, which had been strengthening since August, had now stopped doing so.
"The expected drop in economic activity in the European Union will affect Georgia's trade balance, which could cause domestic demand to weaken further," the bank said.
The refi rate was lowered a quarter of a percent on four occasions last year, in July, August, October and December.
The government expects 2012 inflation of up to 6%.
