Georgian National Bank Monetary policy committee preserves refinancing rate
Georgia, Tbilisi, Oct. 25 / Trend N. Kirtzkhalia /
The Monetary Policy Committee of the Georgian National Bank decided to keep the refinancing rate, which stands at 5.75 per cent, unchanged on October 24.
The bank said that inflation and the base inflation level were low in September. The annual inflation rate was 0.1 per cent. According to the forecasts, a moderate increase in inflation will be evident by the end of the year.
The economic growth indices in the third quarter as in the first half of the year indicate a high growth, though the deviation from the potential level is close to zero. GDP growth was 8.2 per cent which is considered high, in the second quarter.
It should be stressed that investments stipulated this year's economic growth. This affected the growth of imports. It is necessary to mention the high growth in imports of investment goods.
The stability of the national currency was preserved. This indicates there is no additional risk to the country's economy.
Proceeding from the fact that the forecasted inflation rate in the medium term will reach its target level and the deviation from potential GDP level is slight, the Georgian National Bank decided to leave the monetary policy rate unchanged.
The Georgian National Bank will review the current economic processes and financial markets in the future. The next meeting of the Monetary Policy Committee will be held on November 21.