Georgia's National Bank again keeps refinancing rate at 11%

TBILISI. Oct 26 (Interfax) - The Monetary Policy Committee of the National Bank of Georgia again decided at a meeting on Wednesday to leave the monetary policy rate, also known as the refinancing rate, at 11%, where it has been since March 30 when it rose from 10.5%.

National Bank Governor Koba Gvenetadze said at a press briefing following the meeting that the regulator would continue with a tight monetary policy given the situation in the world, as well as the country.

Inflation reached 11.5% in Georgia in the first nine months of the year and will remain high until the end of the year. It will total approximately 10%-10.5% in January 2023, but will begin to fall in the second half of next year, Gvenetadze said.

"Declining prices for food have been observed on global markets for six months already, and this will positively affect inflation in the country," he said.

Georgia had annual inflation of 13.9% in 2021.

Economic growth will total no less than 10% in 2022 compared to 10.4% in 2021, and GDP will grow 4% in 2023 and 5%-5.5% in 2024, Gvenetadze said.

Gvenetadze said in response to a question whether the refinancing rate may be lowered at the Monetary Policy Committee's next meeting that the situation does not yet allow for that this year. There are significant risks, partly due to the military operation in Ukraine, he said.

The stability of the national currency is a positive factor linked to a sharp increase in money transfers from Russia, Gvenetadze said.