21 Dec 2011 19:49

Nat'l Bank of Georgia lowers refi rate to 6.75%

TBILISI. Dec 21 (Interfax) - The National Bank of Georgia is lowering its key refinancing rate a quarter of a percent to 6.75% effective December 22, the bank said.

The bank said inflation, which slowed further to 1.9% in annual terms in November, was expected to remain low in H1 2012 but then rise moderately.

It also said lending by banks had slowed.

The refi rate was lowered a quarter of a percent on three occasions this year, in July and August and October, and was left at 7.5% in September.

The government expects 2011 inflation of up to 8%. The National Bank improved its forecast in September to 7.5% from 5.6%.