NBG Keeps Key Refinancing Rate Unchanged at 8%
On March 12, the Monetary Policy Committee of the National Bank of Georgia (NBG) decided to keep the key refinancing rate unchanged at 8%, noting that annual inflation remains below the 3% target.
In February 2025, consumer prices rose by 2.4% year-on-year, while core inflation was 2.0%. Inflation for domestically produced goods and services, which the NBG considers a better indicator of long-term inflation expectations, reached 3%.
The NBG reported stronger-than-expected economic activity, with preliminary data showing a growth rate of 11.1% in January 2025. The bank highlighted strong aggregate demand, high economic potential, and the role of business loans in driving growth.
The central bank outlined two possible risk scenarios. A high inflation scenario, fueled by global uncertainty and tariff policies that disrupt supply chains, could require a higher policy rate. Conversely, a low-inflation scenario, driven by a weakening US dollar index (DXY) and an appreciating exchange rate, could reduce inflationary pressures by lowering the prices of imported goods.
The next Monetary Policy Committee meeting is scheduled for May 7, 2025.
Also Read:
- 29/01/2025 – NBG Keeps Key Refinancing Rate Unchanged at 8%
- 23/10/2024 – NBG Keeps Key Refinancing Rate Unchanged at 8%
- 30/07/2024 – NBG Keeps Key Refinancing Rate Unchanged at 8%
- 19/06/2024 – NBG Keeps Key Refinancing Rate Unchanged at 8%
- 22/05/2024 – NBG Reduces Key Refinancing Rate from 8.25% to 8%
- 13/03/2024 – NBG Reduces Key Refinancing Rate from 9% to 8.25%
This post is also available in: ქართული (Georgian) Русский (Russian)