20.May .2022 11:00

Governor Of NBG Took Part In The IMF Even

Governor Of NBG Took Part In The IMF Even
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The International Monetary Fund has published its Regional Economic Outlook for the Middle East and Central Asia. The survey addresses the impact of the major economic challenges facing the region. The report includes the IMF's recent forecast and reviews the key priorities that will help countries in the region cope with their short-term challenges and lay a solid foundation for transformational recovery.

A hybrid event was held On May 19, organized by the International Monetary Fund and the National Bank of Kazakhstan. Koba Gvenetadze, Governor of the National Bank of Georgia, spoke with the participants about the survey. He discussed the economic challenges facing the region and focused on inflation and the impact of the normalization of US monetary policy.

"The new reality has caused an upward revision of the pre-war forecasts for inflation. Due to worsened imbalances in the global supply and demand, sharp rises of energy and food prices on international commodity markets have already been transmitted to consumer prices in Georgia. Monetary policy tightening in advanced economies, in response to high inflation, is also expected to have negative consequences for capital inflows, investments and bond yields, putting pressure on local currencies in the region, prompting hikes in interest rates and slowing the pace of recovery in these economies. This is a trade-off. However, given the importance of the price stability objective and realizing the cost of disinflation if inflation expectations become de-anchored, the NBG has decided to tilt its decisions towards inflation side - tightening monetary policy, even if it means tighter conditions or more expensive credit for domestic agents," said Governor Gvenetadze.