BAKU, Azerbaijan, Feb.5
By Tamilla Mammadova – Trend:
National Bank of Georgia (NBG) does not expect an easing of the monetary policy rate in 2021 in the country, said Archil Mestvirishvili, Vice-President of the NBG, Trend reports via Georgian media.
The NBG estimates that further strengthening of the rate is more realistic this year.
The Monetary Policy Committee (MPC) of the National Bank of Georgia met on February 3, 2021, and decided to keep the refinancing rate unchanged at 8 percent. The central bank explained that in the light of the crisis reduction of refinancing was not expected at that stage.
“We do not expect an easing of monetary policy this year. However, if the events develop in various directions, we do not rule out the tightening," said Mestvirishvili.
"We also have a more pessimistic scenario that the pandemic will last longer. Tourism recovery will be less, as well as the economic situation in the region is deteriorated, then we have to tighten the monetary policy rate. In this case, economic growth will be around 1 percent this year. As of the main scenario, we have a 4 percent increase,” said the vice president of the NBG.
The refinancing rate is set at 8 percent in Georgia since May 5, 2020, after which it is kept unchanged at four meetings of the Monetary Policy Committee.
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