National Bank of Georgia maintains refinancing rate at 7%

The National Bank of Georgia (NBG) will keep its monetary policy rate unchanged at 7 percent.

The Monetary Policy Committee (MPC) of the Bank met today and decided not to change the current refinancing rate.

The NBG explained that the dynamic of inflation is in compliance with existing forecasts. In August, the annual inflation rate was decreased to 5.7 percent. The forecasts say that by the end of the year the inflation rate will be slightly higher but from the next year, as soon as temporary factors are gone, it will reach 3 percent rate.

"This is why the Monetary Policy Committee decided to keep the refinancing rate unchanged at this stage”, the NBG said.

It added that foreign demand still shows a positive tendency and export as well as tourism incomes are increasing fast. According to the NBG, preliminary data showed that during the first seven months of this year economic growth was 4.4 percent.

The next meeting of the Monetary Policy Committee will be held on October 25, 2017