National Bank of Georgia to reduce monetary policy rate to 4.75%

14 February 2013, 06:58 (GMT+04:00)

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Georgia, Tbilisi, Feb. 14 / Trend, N.Kirtskhalia /

Monetary Policy Committee of the National Bank of Georgia on Wednesday decided to reduce the interest rate by 50 basis points to 4.75 per cent, National Bank told Trend.

After the last meeting of the monetary policy committee projected inflation further reduced. According to current projections it is expected that the consumer price index measure of inflation in the current year will be lower than the target, and close to it in the second half of next year.

Preliminary indicators of economic activity in the fourth quarter shows a decline in economic growth, which has affected the price drop. National Bank forecasts for economic growth in 2013 have not changed, they will be revised based on the data for the first quarter.

Based on the fact that the rate of inflation in the medium term behind the target, the National Bank of Georgia continued easing of monetary policy and the monetary policy rate cuts.

The next meeting of the monetary policy committee will be held on March 27.

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