Georgian National Bank increases refinancing rate

Photo: Georgian National Bank increases refinancing rate / Georgia

Tbilisi, Georgia, Feb.13
By Nana Kirtzkhalia - Trend:

The Monetary Policy Committee of the Georgian National Bank adopted a decision to increase the refinancing rates by 25 basis points. The monetary policy rate amounted to four percent, the National Bank told Trend.

It is expected that inflation will reach the targeted level in the second half of 2014, according to the prognosis. Prices increased by 0.8 percent in January compared to the previous month.

The revival of economic activity was observed in late 2013. The growth of economic activity exceeded eight percent in November-December 2013, according to the preliminary data. On this basis, the forecasted growth in the fourth quarter amounted to 6.9 percent, while the GDP growth in 2013 was 3.1 percent.

Growth was also observed in bank credit activity which significantly increased in the last month of 2013. The credit portfolio of commercial banks, except the effect of the exchange rate, has increased by 16 percent in 2013.

It is assumed that the economic growth tendency will also be kept in the first half of 2014.
The next meeting of the Monetary Policy Committee of Georgian National Bank will take place on March 26.

Translated by L.Z.

Edited by S.M.

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