The Monetary Policy Committee of the National Bank of Georgia (NBG) today kept the refinancing rate unchanged at 11%.
In its decision, the central bank noted that “elevated inflation and inflationary risks remain a global challenge in recent times,” adding that on the world market, sanctions imposed on Russia over its invasion of Ukraine have delayed supplies and restricted exports from Ukraine which have significantly increased the price of food, raw materials, and energy resources.
The NGB also noted that the rise of long-term visits from Russia, Belarus, and Ukraine to Georgia has increased apartment rent “dramatically and instantly, which had a significant impact on both aggregate (0.6 percentage points) and core inflation (1.1 percentage points).
According to the central bank, despite "high uncertainty," it expects that prices on international markets will not rise much and that inflationary prices will decrease over the year on the world markets.
It also emphasized that lending activity remains high as a result of consumer and foreign currency loans but that if the growth rate of loans continues the Bank will use additional measures at its disposal if necessary.
The next meeting of the Monetary Policy Committee is slated for August 3, 2022.