National Bank of Georgia cut its discount rate to 5.75 percent

Business Materials 20 June 2012 22:53 (UTC +04:00)

Georgia, Tbilisi, June 20 /Trend N.Kirtzkhalia/

Monetary Policy Committee of Georgian National Bank cut discount rates by 25 basis points to 5.75 percent on Wednesday. The decision was made after deflation was observed for the fourth time during the last four months, the National Bank stated.

Annual inflation in May was minus 3.3 percent compared to the same period last year, and minus 0.9 percent compared to the previous month.

Monetary Policy Committee of the National Bank of Georgia said the annual inflation rate will begin to "grow moderately" since June, but remain below target, both this year and early next year.

The inflation rate for 2012 forecasted by the government was 6 percent.