Georgian central bank leaves monetary policy rate unchanged at 9.5%
When the economy is growing at a rate that may lead to increased inflation, the central bank of Georgia may increase interest rates. In May annual inflation stood at 7.7%. Photo: Nino Alavidze/Agenda.ge.
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The Georgian central bank is leaving the refinancing rate unchanged at 9.5% following a meeting of the monetary policy committee, whose decisions on changes to the monetary policy rate rely on current and expected developments in the economy and financial markets.
When the economy is growing at a rate that may lead to increased inflation, the central bank of Georgia may increase interest rates. In May annual inflation stood at 7.7%.
NBG said that the contribution from imported food prices to the inflation rate is still high due to rising prices on international agricultural markets and the exchange rate depreciation in previous periods.
At the same time, rising global oil prices are pushing fuel prices higher and, consequently, increasing their contribution to inflation. In addition, amid rising natural gas tariffs in Tbilisi, the impact of utility fees on the inflation rate is expected to increase further starting from June. The base effect of the previous utility fees' subsidy will temporarily increase the annual inflation in December 2021 and January-February 2022", said the NBG.
Economic activity meanwhile increased 8.1% year-on-year in the first four months of the year and exceeded the 2019 level. Imports have grown, external inflows have increased, 'contributing to the positive dynamics on the foreign exchange market and, supporting the reduction of inflation'.
Annual inflation is expected to peak in June, while in 2021, other things being equal, it will average 7%. Maintaining tight monetary policy for a prolonged period and the expected fade-out of one-off exogenous factors that are independent from the monetary policy will support the gradual return of inflation to the target in 2022. Taking into account these factors, the committee decided to leave the monetary policy rate unchanged", said the NBG.
The next meeting of the monetary policy committee will be held on August 4, 2021.
The National Bank of Georgia (NBG) has decided to increase the refinancing rate by 0.5 percentage points to 8.5%. The decision was made at a meeting of the Monetary Policy Committee today. Last month annual inflation stood at 3.6%; the NBG says that the reduction of inflation since last December is related to the subsidisation of utility fees.
The prices of transport, restaurants and hotel food, furnishings, household equipment and maintenance have increased in Georgia month-on-month, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
In April 2021 the consumer price index increased by 0.9% compared to the previous month, while the annual inflation rate amounted to 7.2%, according to the latest inflation data from the National Statistics Office of Georgia (Geostat).
The National Bank of Georgia (NBG) has increased the refinancing rate by one percentage point to 9.50% as a result of which loans for about 125,000 borrowers will increase by one per cent, says the non-government organisation Society and Banks.
Commercial banks in Georgia lent 39.53 billion GEL and received deposits of 35.41 billion GEL in May 2021, show the latest data by the National Bank of Georgia (NBG). The amount of deposits decreased by 0.59% month-on-month, while loans decreased by 1.54%.
In June 2021 the consumer price index increased by 0.7% compared to the previous month, while the annual inflation rate amounted to 9.9%, show to the latest inflation data from the National Statistics Office of Georgia (Geostat). As for annual inflation, prices increased in the group of transport (+22%), housing, water, electricity, gas and other fuels (10.05%) and food and non-alcoholic beverages (+8.8%).
The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 10 per cent earlier today at the Monetary Policy Committee (MPC). Georgia’s annual inflation came out unexpectedly high in comparison with last year and amounted to 11.9 per cent in July, the NBG stated.
Commercial banks in Georgia lent 39.60 billion GEL and received deposits of 35.12 billion GEL in July 2021, show the latest data by the National Bank of Georgia (NBG). The amount of deposits increased by 1.72%% month-on-month, while loans also increased by 0.98%. There are 15 commercial banks in Georgia, including 14 foreign-owned banks and one branch of non-resident banks.
The consumer price index has increased by 0.7 per cent compared to the previous month, while the annual inflation rate amounted to 12.8 per cent, the National Statistics Office of Georgia (Geostat) reports.
The Georgian central bank is leaving the refinancing rate unchanged at 10% following a meeting of the monetary policy committee, whose decisions on changes to the monetary policy rate rely on current and expected developments in the economy and financial markets.