Georgian National Bank keeps refinancing rate unchanged

Business Materials 29 August 2012 20:46 (UTC +04:00)

Georgia, Tbilisi, Aug. 29 / Trend N.Kirtskhalia /

Monetary Policy Committee of the National Bank of Georgia on Wednesday decided to keep its refinancing rate unchanged. Monetary policy rate is 5.75 percent.

In July, rate of inflation and core inflation was low. Annual inflation was 0.6 percent.

Indicators of economic growth in the third quarter, as in the first half of the year indicate a high growth, while the deviation from the potential level is close to zero.

It is noteworthy that this year economic growth is due to investment that has low risks of price pressures from the demand. The above addition of capital formation was reflected in the growth of imports. It is necessary to note the high growth in imports of investment goods.

Based on the fact that the forecast of inflation in the medium term will reach the target level and the deviation from potential GDP is slight, the National Bank of Georgia has decided to keep the monetary policy rate unchanged.

National Bank of Georgia will in the future watch the current economic developments and financial markets and will take appropriate action.

The next meeting of the monetary policy committee will be held on September 26.