BAKU, Azerbaijan, October 23
By Tamilla Mammadova – Trend:
The Monetary Policy Committee of the National Bank of Georgia raised the refinancing rate by 1 percentage point to 8.5 percent, Trend reports via the National Bank of Georgia (NBG).
According to the NBG, annual inflation in September amounted to 6.4 percent. The bank noted that the inflation rate in excess of the target level is due to both temporary factors and the transmitting effect of the depreciation of the nominal lari exchange rate.
"According to the forecast, this year, inflation will remain above the target level, inflation will begin to decline from March next year, and in the medium term will stay close to the target level," said the bank.
"The nominal effective lari exchange rate again remains at a depreciated level and puts pressure on inflation in the direction of growth. Factors coming from aggregate demand only partially offset this pressure," said the bank.
The report also said that subsequent decisions of the Committee will depend on how quickly the pressure on inflation coming from the exchange rate is removed.
The next meeting of the Monetary Policy Committee will be held on December 11, 2019.
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