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Georgian National Bank leaves monetary policy rate unchanged

The monetary policy committee of the Georgian National Bank decided on December 17 to leave the refinancing rate unchanged. The monetary policy rate is 4 percent.

The economic trends have recently deteriorated with the countries – major trading partners. This affects the Georgian economy, the National Bank told Trend.

A significant decline in exports and money transfer was fixed in November, according to the preliminary information. Despite the recent depreciation of the lari exchange rate versus the dollar, the nominal effective exchange rate appreciated. The significant inflationary pressure is not expected.

Inflation will reach a 5 percent target index in the second half of 2015, according to the forecasts. The National Bank of Georgia, in assessing the impact of the regional deteriorating situation on external needs and economic growth, has kept the monetary policy rate at 4 percent.

The annual inflation rate was 2.8 percent in November 2014.

The next meeting of the Monetary Policy Committee will be held on February 11, 2015.