NBG tightens monetary policy to avoid further inflation
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The National Bank of Georgia (NBG) has decided to increase its refinancing rate in response to increased inflation expectations.
The Monetary Policy Committee (MPC) of the Bank met yesterday and decided to increase the refinancing rate by 50 basis points to 7.5 percent.
The NBG said the monetary policy decision was based on the macroeconomic forecast, where the Bank tightened the monetary policy in response to increased inflation expectations. Further changes to the monetary policy will depend on the inflation forecast, factors affecting inflation and the general state of the economy, said NBG.
As of today, figures from the National Statistics Office of Georgia (Geostat) showed the country’s monthly inflation rate was slightly dropping while the annual inflation rate was on the rise, following price changes to several major commodities in the consumer basket.
The main factors causing a rise in inflation are still coming from the supply side, namely the increase in the input costs of production due to the exchange rate depreciation and higher prices on certain imported goods,” said NBG.
An important impact on the inflation came from the one-time increase in the electricity tariff. The rise in inflation has been limited by the weak aggregate demand and decrease in the world prices of oil and food products,” explained the Bank.
Geostat reported the October 2015 monthly inflation rate reached 0.8 percent (1.1 percent in September) while the annual inflation rate equalled 5.8 percent (5.2 percent in September).
Meanwhile, NBG forecast inflation will remain above its target value in the beginning of 2016 will return to its target value of five percent in the second half of 2016.
The National Bank of Georgia has increased its refinancing rate following advice from its Monetary Policy Committee (MPC).
The National Bank of Georgia has increased its refinancing rate following advice from its Monetary Policy Committee (MPC).
More than 7,000 people in Georgia will soon have to fork out more in debt repayments as the financing rate increased by 50 basis points to 5.5 percent.
The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) met today and decided to increase the refinancing rate by 50 basis points to 4.5 percent.
Global monetary experts are set to visit Georgia to assess the country’s financial situation. The International Monetary (IMF) Fund will send a mission to Georgia to hold meetings with local authorities.
Inflation in Georgia will reach its peak in the first quarter of 2016 and will return to the target rate from the second quarter, says National Bank of Georgia (NBG) president Giorgi Kadagidze.
More than 8,000 people in Georgia will soon have to fork out more in debt repayments after an increase to the financing rate by 50 basis points, to eight percent.
Georgia’s monthly and annual inflation rate are slightly dropping following price changes to several major commodities in the consumer basket.
Inflation in Georgia is increasing following price changes to several major commodities in the consumer basket.
The National Bank of Georgia will keep its monetary policy rate unchanged at eight percent.
Inflation in Georgia is dropping following monthly price changes to several commodities in the consumer basket including food, alcohol and tobacco.
The National Bank of Georgia (NBG) projects Georgia's economic growth will hit three percent in 2016.
Georgia is starting to move away from its tightened monetary policy set by the National Bank of Georgia (NBG) in February 2014 – the time when the national currency (Lari/GEL) started to fall against the United States (US) dollar and the Euro.
Georgia is continuing to move away from its tightened monetary policy set by the National Bank of Georgia (NBG) in February 2014 – the time when the national currency (Lari/GEL) started to fall against the United States (US) dollar and the Euro.
The National Bank of Georgia will keep its monetary policy rate unchanged at 6.5 percent. The Monetary Policy Committee (MPC) of the Bank met today and decided not to change the current refinancing rate.