Georgia keeps monetary policy rate unchanged
The monetary policy committee of the Georgian National Bank decided on December 17 to leave the refinancing rate unchanged. The monetary policy rate is four percent.
The economic trends have recently deteriorated with the major trading partners of the country. This affects the Georgian economy, the National Bank told Trend.
A significant decline in exports and money transfer was fixed in November, according to the preliminary information. Despite the recent depreciation of the lari exchange rate versus the dollar, the nominal effective exchange rate appreciated. The significant inflationary pressure is not expected.
The inflation will reach a five percent target index in the second half of 2015, according to the forecasts. The National Bank of Georgia is assessing the impact of the regional deteriorating situation on external needs and economic growth. It keeps the monetary policy rate at four percent.
The annual inflation rate was 2.8 percent in November 2014.
The next meeting of the Monetary Policy Committee will be held on February 11, 2015.