BAKU, Azerbaijan, Jan.29
By Tamilla Mammadova – Trend:
National Bank of Georgia (NBG) does not exclude the long-term use of tight monetary policy, Trend reports with reference to the bank.
As reported, the decision was made at the meeting of the Monetary Policy Committee of NBG, held on January 29, 2020.
“If the exchange rate indicators put additional pressure on inflation, this could cause a tight monetary policy for a long time,” the bank said.
According to the forecasts of the National Bank, inflation will begin to decline from the beginning of this year and by the end of this year will approach the target level of three percent. This will be facilitated by monetary policy, which will remain tight as long as medium-term inflationary expectations are not reduced to the target level.
"The National Bank of Georgia will continue to monitor the current economic processes and financial markets, and will use all available means to ensure price stability," the bank said.
The next meeting of the Monetary Policy Committee of the National Bank of Georgia will be held on March 18, 2020.
As of January 1, 2020, the banking sector of Georgia was represented by 15 commercial banks, including 14 banks controlled by foreigners.
The banking sector's own funds (equity capital) equal 5.7 billion lari ($1.9 billion), which makes up 12.2 percent of the commercial banks total assets.
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