Baku, Azerbaijan, September 4
By Tamilla Mammadova – Trend:
The Monetary Policy Committee of National Bank of Georgia (NBG) made the decision to increase the refinancing rate by 0.5 points from 6.5 percent to 7 percent on September 4, 2019, Trend reports citing the National Bank of Georgia.
The bank explains that annual inflation in August was fixed at 4.9 percent. According to the bank, the inflation rate above the target is due to several factors. One-time factors including increased excise taxes on tobacco products remain one of the reasons for maintaining high annual inflation rates.
At the same time, the committee is ready to continue tightening monetary policy until the pressure exerted on the inflation by lari exchange rate is weakened.
The bank said that it will continue to observe the ongoing economic processes and financial markets, and will use all the available resources to ensure the stability of prices.
The next sitting of NBG’s Monetary Policy Committee is scheduled for October 23, 2019.