**National Bank of Georgia Keeps Interest Rate Unchanged**
The Monetary Policy Committee of the National Bank of Georgia (NBG) made a decision on March 12 to keep the key refinancing rate unchanged at 8%. This was due to annual inflation remaining below the 3% target.
**Inflation Remains Low**
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 reached 3%, which is considered a better indicator of long-term inflation expectations.
**Strong Economic Growth**
The NBG reported strong economic growth, with preliminary data showing an 11.1% increase in January 2025. The bank highlighted the importance of business loans in driving this growth.
**Possible Risk Scenarios**
The central bank outlined two possible risk scenarios. A high inflation scenario, fueled by global uncertainty and tariff policies, could require a higher policy rate. On the other hand, a low-inflation scenario, driven by a weakening US dollar index and an appreciating exchange rate, could reduce inflationary pressures.
**Next Monetary Policy Committee Meeting**
The next meeting of the Monetary Policy Committee is scheduled for May 7, 2025.
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