On October 28, the National Bank of Georgia (NBG) kept the key refinancing rate at 8%.
The Monetary Policy Committee of NBG decided to keep the discount rate, since price dynamics in recent months were in line with the central bank’s forecasts, with inflation continuing to decline, reaching 3.8% in September.
The National Bank of Georgia stated that inflation, driven downward by weak aggregate demand, will have a declining trend and remain close to the target level in 2021.
Taking into account the significantly reduced external demand, with revenues from international travelers declining by 95% in September annually, the NBG said it expects domestic demand to be the key driver of economic growth in 2021.
The central bank kept the key rate for the second time after reducing it to 8% on August 5. The Monetary Policy Committee convenes again on December 9.