**National Bank of Georgia Keeps Monetary Policy Rate Unchanged**
The National Bank of Georgia (NBG) has decided to keep the monetary policy rate, also known as the refinancing rate, unchanged at 8%. This decision was made by the NBG’s Monetary Policy Committee on January 29, 2025.
**Inflation Remains Under Control**
According to the NBG, inflation in Georgia has been below its target of 3% since early 2023. In December 2024, the general price level increased by 1.9% compared to the previous year. This is mainly due to domestic economic factors and the NBG’s consistent monetary policy.
**Economic Growth Remains Strong**
The economy in Georgia has been performing well, with an average growth rate of 9.4% from January to November 2024. This strong performance is expected to continue in 2025, with economic growth returning to its long-term trend of 5%.
**Uncertainty and Risks Ahead**
However, the NBG notes that uncertainty has increased due to domestic and geopolitical turbulence. In order to manage potential risks, the committee considered alternative scenarios, including a high-inflation risk scenario and a low-inflation risk scenario.
**Caution in Rate Normalization**
Based on its analysis of the current economic situation and forecast scenarios, the Monetary Policy Committee opted for a cautious approach to further normalization of the rate. The policy rate will gradually normalize to a neutral 7% level as risks are mitigated.
**Next Meeting Scheduled**
The next meeting of the Monetary Policy Committee is scheduled to take place on March 12, 2025. In the meantime, the NBG will continue to use all available instruments to maintain price stability and ensure that inflation remains close to its target of 3% in the medium term.
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