10.May .2022 12:00

Banking Association Doesn’t Expect A Reduction In The Refinancing Rate

Banking Association Doesn’t Expect A Reduction In The Refinancing Rate
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Aleksandre Dzneladze, head of the Banking Association of Georgia hopes that the National Bank will not tighten the refinancing rate.

The point is that a meeting of the Monetary Policy Committee of the National Bank will be held on May 11, after which it will be announced whether the regulator will soften or tighten the rate.

"We can unequivocally say that monetary policy rate will not be eased, but I hope it will not be tightened further. Inflation is growing and may rise even further, at least until the autumn. Therefore, it is difficult to assume that monetary policy will be eased by the end of the year.

Today the refinancing rate is quite high - 11%, so the monetary policy rate is already strict, and I hope that there will be no need to tighten it even more and the NBG will not decide to increase the rate, because it is already a heavy burden for the consumers and the citizens," - said Aleksandre Dzneladze.