BAKU, Azerbaijan, July 8
By Tamilla Mammadova – Trend:
Inflation is expected to start falling from March 2022 in Georgia, said the President of the National Bank of Georgia (NBG) Koba Gvenetadze, Trend reports via Georgian media.
In Gvenetadze’s words, expectations for economic growth have improved that boosts the lari’s exchange rate strengthening.
"The current situation is behind our monetary policy decisions, but it is very important to take into account what we see in the forecast. In Georgia as well as in the rest of the world, inflation is becoming a bigger problem being above a target threshold," he said.
According to him, the current high inflation is caused by hiking oil, sugar, wheat prices that is temporary. As soon as these temporary factors are overcome, the inflation rate will return to its target level. Given all this, we considered the tightening unnecessary.
"We will be patient in waiting for inflation expectations and based on them will make a decision. in the long run we will probably cut high-interest rates, the Monetary Policy Committee will analyze these factors once a month and a half. Any central bank can’t forecast the lari’s exchange rate, especially in a country with a floating exchange rate. But it’s worth mentioning that expectations for economic growth have improved that also boosts the lari’s exchange rate", Gvenetadze notes.
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