16.Oct .2020 15:30

“Immediate Reduction of Interest Rates Is Impossible” – Gvenetadze

“Immediate Reduction of Interest Rates Is Impossible” – Gvenetadze
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Koba Gvenetadze, the President of the National Bank of Georgia, posted a statement on his social network page and responded to the criticism that interest rates in Georgia should be the same as in Europe, and they should be reduced in a short time.

Koba Gvenetadze explains to critics that many factors contribute to the formation of interest rates, such as regional risk, political stability, stable economic growth, low and stable inflation, and more.

"Immediate reduction of interest rates to the level of the European interest rate, without gross and totally inadmissible interference is impossible. This is a long-term process. It should be noted that Georgia has the lowest interest rates in the region. Simultaneously, if we look at the long term, they tend to decrease, and this process will continue. Simultaneously, the formation of the interest rate is also influenced by the interest rate of the monetary policy, which is determined by the National Bank by taking into account the inflation forecast. To summarize this issue, " impressions on the immediate and unconditional equalization of interest rates in Georgia with European interest rates are greatly exaggerated," said the President of the National Bank of Georgia.