Georgia’s central bank: refinancing rate drops 25 basis points to 6.5%
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Changes to the monetary policy rate rely on the current and expected developments in the economy and financial markets. Photo: Nino Alavidze/Agenda.ge.
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The National Bank of Georgia (NBG) decreased its refinancing rate by 25 basis points following today’s advice from the Monetary Policy Committee (MPC).
With this change the bank’s refinancing rate now stands at 6.5 per cent.
NBG explains that changes to the monetary policy rate rely on the current and expected developments in the economy and financial markets. While formulating the monetary policy the MPC takes into account the projected inflation rate.
If projected inflation is above the target inflation rate, the NBG will tighten monetary policy by raising the policy rate to combat a future surge in the general price level… when the current forecasts of inflation are below the target, the NBG will pursue an expansionary monetary policy by lowering the refinancing rate”, explained the NBG.
NBG says that starting the year 2019, and in line with the forecasts, the inflation rate remained around its target level of 3%. In February, the annual inflation equalled 2.3 per cent NBG says inflation is expected to fluctuate near the target level.
NBG will continue to monitor changes in the economy and financial markets and will use all the means and instruments at its disposal to ensure price stability.
The National Bank of Georgia (NBG) has purchased $15 million at foreign exchange auction to control the national currency’s changing value against the US dollar.
The National Bank of Georgia (NBG) will use a new instrument, FX Options, to replenish its international reserves.
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The National Bank of Georgia (NBG) decreased its refinancing rate by 25 basis points following today’s advice from the Monetary Policy Committee (MPC).
The National Bank of Georgia (NBG) has purchased $15 million at foreign exchange auction to control the national currency’s changing value against the US dollar.
This year the National Bank of Georgia (NBG) is celebrating the 100th anniversary of its foundation with number of events planned throughout the year.
Twenty-five currency exchange offices have been closed and 10 have been fined in Georgia’s capital city of Tbilisi for not abiding by the rule of registration and regulations set by the National Bank of Georgia (NBG) in 2016.
New regulations on responsible lending practices that came into force on January 1, 2019 have reduced financial stability risks, reports the Financial Stability Committee of the National Bank of Georgia (NBG).
The National Bank of Georgia (NBG) and the Finance Ministry of Georgia are joining forces to create new legislation for commercial banks in Georgia, aiming to identify early financial difficulties of commercial banks and eliminate the problem in the initial stages.
The National Bank of Georgia (NBG) plans to sell $40 million on exchange auction tomorrow as the Georgian lari continues to devalue. In a statement released on July 31, the NBG said “despite the positive internal and external macroeconomic dynamics” today’s exchange rate has reached a level “that might pose a risk to price stability” amid “the tourism-related shocks and negative expectations”.