Georgia's Central Bank lowers refinancing rate to 10.5% per annum

TBILISI. May 10 (Interfax) - The Monetary Policy Committee of the National Bank of Georgia on Wednesday decided to reduce the refinancing rate by 0.5 percentage points from 11% to 10.5% per annum, the press service of the National Bank reports.

The NBG notes that inflation in Georgia currently has a downward tendency, and in April this year it slowed to 2.7%, while core inflation dropped to 4.7%.

The report says that this is due to falling prices for imported products. Prices in international commodity markets have been gradually decreasing since mid-2022, and the cost of international transportation has approached pre-pandemic levels. These factors, as well as the strengthening of the national currency, have had a positive impact on inflation.

Analysts at the National Bank predict that inflation will continue to slow in the second half of this year and by the end of 2023, it will reach the target level of 3%.

The next meeting of the Monetary Policy Committee will be held on June 21, 2023.

As previously reported, since the beginning of the year, the National Bank of Georgia has kept the refinancing rate at 11%. The bank raised it once in 2022, on March 30, to 11% from 10.5% per annum. Prior to this, the rate was increased on December 8, 2021 to 10.5% from 10% per annum.