The NBG Might Soften The Monetary Policy In March - Galt&Taggart

00:32 Wed, 29 March

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30.Dec .2022 13:00

The NBG Might Soften The Monetary Policy In March - Galt&Taggart

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Author:Natia Taktakishvili

Galt&Taggart economist Lasha Kavtaradze predicts that the National Bank of Georgia might soften the monetary policy rate in March instead of the second half of next year.

He told TV program "Business Morning" that price dynamics will decrease from next year, which allows monetary policy to be eased earlier than announced.

"What we will see a decrease in price dynamics at the beginning of the year. The dynamics of price reductions should raise expectations that the National Bank will move to monetary policy easing earlier than it is predicted to be in the second half of the year. If we got single-digit inflation in December and it will continue in January-February, there is a high probability that a decision regarding easing of monetary policy will be made at the meeting held in March," he said.

The monetary policy rate currently stands at 11%. The decision on this was made by the Monetary Policy Committee of the National Bank of Georgia on December 21, 2022.

Galt&Taggart Lasha Kavtaradze