BAKU, Azerbaijan, March 28. The inflation rate in Georgia was anticipated to decrease from 14 to 8 percent in late March 2022, however, this is currently not expected, Koba Gvenetadze, the President of the National Bank of Georgia, said, Trend reports via Georgian media.
According to Gvenetadze, due to the hostilities between Russia and Ukraine, the global supply chain was disrupted, which certainly affected Georgia’s trade turnover with these countries in the long term.
As the NBG president explained, Russia was the largest supplier of vegetable oil to Georgia, therefore, the country already sees an increase in oil prices, and this will consequently apply to many other products.
Thus, the refinancing rate in Georgia will remain unchanged and the decrease is also not expected in the nearest future, Gvenetadze noted.
The monetary policy rate in Georgia increased by 0.5 percent to 10.5 percent on December 8, 2021. The Monetary Policy Committee of the NBG kept the refinancing rate unchanged on February 2, 2022. Meanwhile, the annual inflation rate in Georgia in February 2022 amounted to 13.7 percent.
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