Tbilisi, Georgia, June 18
By Nana Kirtzkhalia - Trend:
The Monetary Policy Committee of Georgian National Bank has left the monetary policy rate unchanged - at 4 percent, the bank told Trend on June 18.
The National Bank launched a phased withdrawal from the softened monetary policy in February 2014.
The bank said the pace of this process depends on economic activity and the speed of recovery of demands.
The bank still believes that there is a need in withdrawal from the softened monetary policy, although current forecasts show that this process will be lengthy.
Based on this, in the medium term the committee decided to leave the monetary policy rate unchanged, in order to achieve the target inflation rate.
It is expected that there will be a phased growth in the inflation rate and achievement of the target level of 5 to 6 percent in the second half of 2014, according to forecasts of the National Bank.
"Recently there has been a slowdown in the growth of exports, which shows a weakening of the external demand. It is also necessary to note the slow growth in lending activity, which affects the growth of domestic demand," the National Bank said.
Georgia's National Bank will further continue observing the economic processes and the financial market, and will use all means at its disposal to maintain the price stability.
The next meeting of the Monetary Policy Committee of the Georgian National Bank will be held on August 13, 2014.
Edited by CN