National Bank of Georgia lowers refinancing rate

Business Materials 19 January 2012 12:10 (UTC +04:00)

Georgia, Tbilisi, Jan.19 / Trend, N.Kirtskhalia /

The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) lowered its refinancing rate by 25 basis points to 6.5 percent, the National Bank told Trend on Thursday.

According to the report, this decision was taken amid drop of inflation to 2 percent in Georgia in December 2011.

According to the existing forecasts, inflation is expected to remain low in the first half of the year, which allows lowering refinancing rate.

According to the Monetary Policy Committee, the trade deficit keeps increasing in the recent period, mostly due to the increase in imports.

In this regard, Monetary Policy Committee considered it appropriate to continue easing the monetary policy and decided to decrease the refinancing rate.

"The National Bank of Georgia considers that at present the recent monetary easing will be sufficient to keep the inflation in the medium term at the target level," the report says.