ECONOMY
31.01.24 15:40
The National Bank of Georgia on Wednesday said it was continuing its exit from a tight monetary policy by reducing the refinancing rate by 0.5 percentage points, down to nine percent, due to “low inflation environment”.
Inflation is expected to remain below the target of three percent at the beginning of 2024, while stabilising close to the target in the medium term, the Bank said.
The latest inflation data by the National Statistics Office of Georgia showed the consumer price index increased by 0.1 percent in December compared to the previous month, while the annual inflation rate amounted to 0.4 percent.
The central bank noted the “low” inflation was a result of both domestic and external factors, including the tight monetary policy and lower inflation expectations that it said had led inflation of domestically produced goods on a downward trajectory.
It added price pressures stemming from external shocks - the Russia-Ukraine war and the Covid-19 pandemic - had “significantly diminished”, contributing to a lower overall inflation rate.
The Bank also mentioned domestic economic activity in the past year had made an impact on the inflation rate as well. It projected economic activity in 2024 would “gradually normalise” in line with the growth rate of potential gross domestic product, estimated at five percent.
The body noted the granting of the European Union membership candidate status for Georgia in December had “visibly reduced” the sovereign risk premium, which, with all else being equal, could result in a lower neutral policy rate.
However, the Bank also indicated inflationary risks caused by the ongoing “acute geopolitical environment” that was creating uncertainty in shipping costs.
The National Bank said it “remained vigilant” in monitoring economic trends and financial markets, and would implement “all available instruments” to “ensure stability of prices”.
agenda.ge
Read: 334
Write comment
(In their comments, readers should avoid expressing religious, racial and national discrimination, not use offensive and derogatory expressions, as well as appeals that are contrary to the law)
News feed
-
18:1017.05.24
-
17:0017.05.24
-
16:0617.05.24
-
15:1517.05.24
-
14:0017.05.24
-
13:1017.05.24
-
China plans to open Chinese car market in Georgia
12:2517.05.24
-
March to be held in Tbilisi and regions in connection with the day of sanctity of the family
10:5017.05.24
-
Shalva Papuashvili: The sanctity of the family is the foundation of our state
10:0017.05.24
-
Georgian PM, Turkish President to discuss issues of strategic interests, FM Darchiashvili says
18:0016.05.24
-
MIA arrests two for property damage in group
17:3816.05.24
-
Georgian PM pays tribute to the grave of Mustafa Kemal Atatürk
17:0016.05.24
-
16:2616.05.24
-
The National Bank sold 60,000,000 USD at the foreign exchange auction
15:4016.05.24
-
Roman Gotsiridze: The exchange rate of the GEL is unmanageable
15:0016.05.24
-
Tbilisi Mayor: Georgian people to decide change of government through democratic elections
14:2116.05.24
-
The Parliament has completed the public review of the draft law prepared against LGBT propaganda
13:4916.05.24
-
Is Georgia between 'Euromaidan' and 'green men'?
13:4516.05.24
-
Irakli Kobakhidze went on an official visit to the Republic of Turkey
13:0016.05.24
-
12:1316.05.24
-
11:3716.05.24
-
10:5516.05.24
-
Charles Michel reports on the telephone conversation with Salome Zurabishvili and Irakli Kobakhidze
10:0016.05.24
-
Opposition MPs meet FMs of Iceland, Latvia, Lithuania, Estonia
18:0015.05.24
-
17:3715.05.24
-
16:4915.05.24
-
16:0715.05.24
-
15:3515.05.24
-
Separatist South Ossetia may be abolished due to total absence of people
14:5315.05.24
-
14:0015.05.24
-
NATO Spokesperson: We urge Georgia to change course and to respect the right to peaceful protest
13:1515.05.24
-
Estonian Foreign Minister: This law is a symbol of the choice between Russia and the European Union
12:3015.05.24
-
11:3915.05.24
-
11:0815.05.24
-
10:3515.05.24
-
Will France recognise Georgia's territorial integrity?
19:2414.05.24