Georgian National Bank increases refinancing rate to 10.5%
“Although the exchange rate has appreciated relatively year-on-year, the imported inflation was 18% in November,” the NBG says. Photo: Nino Alavidze/Agenda.ge.
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The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 10.5% earlier today at the Monetary Policy Committee (MPC).
The NBG states that increased inflation has been one of the main challenges for Georgia in recent years.
The extraordinary situation caused by the pandemic created many challenges for the world economy, with a high inflationary environment that is particularly concerning,” the NBG says.
Georgia’s annual inflation in November, 2021 grew by 0.6% and amounted to 12.5%, the National Statistics Office of Georgia (Geostat) reported.
The NBG says that a surge in consumer commodity prices on international markets, transmitted to the local market through imported raw materials and finished goods, is one of the key factors that contributed to high inflation.
Although the exchange rate has appreciated relatively year-on-year, the imported inflation was 18% in November,” the NBG says.
NGO Society and Banks says that 169,700 loans tied to floating interest rates remain active as of December 1, 2021, which means that the prices of these loans may grow as well because of the increased refinancing rate.
The total volume of the issued loans tied to floating interest rates amounts to 8.39 million GEL, Society and Banks reports.
The next meeting of the Monetary Policy Committee will be held on February 2, 2022.
Commercial banks in Georgia loaned 41.40 billion GEL and received deposits of 35.75 billion GEL in November of this year, the National Bank of Georgia (NBG) reports.
The average monthly salary in Georgia in the third quarter of 2021 has increased by 129 GEL (about $41/€36) compared to the same period last year, totalling 1,368.5 GEL ($441/€392), the latest data of the National Statistics Office of Georgia (Geostat) show.
The Consumer Price Index in November 2021 grew by 0.6% compared to the previous month, while the annual inflation rate in Georgia stood at 12.5%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show.
The head of the National Bank of Georgia (NBG) Koba Gvenetadze says annual inflation will be higher than earlier expected.
The Consumer Price Index in October 2021 increased by 1.3% compared to the previous month, while the annual inflation rate in Georgia stood at 12.8%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show.
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.
The National Bank of Georgia (NBG) has decided to keep the refinancing rate unchanged at 10.5 percent at a meeting of the Monetary Policy Committee (MPC) earlier today. A “particular concern” for increased inflation was named by the bank in its comments, with the Consumer Price Index growing by 0.3 percent in December 2021 and the annual inflation rate amounting to 13.9 percent in the country.
Commercial banks in Georgia loaned 43.03 billion GEL and received deposits of 37.16 billion GEL in December 2021, the National Bank of Georgia (NBG) says. The volume of loans has increased by 1.63 billion GEL (3.93%) in December compared to the same period last year. The number of deposits also increased by 1.42 billion GEL (3.96%) month-on-month.