“According to the forecast, other things being equal, the inflation will start to decline from the beginning of the year”, Koba Gvenetadze, President of the National Bank of Georgia declared.
The Monetary Policy Committee (MPC) of the National Bank of Georgia (NBG) decided to keep the refinancing rate unchanged at 9.0 percent.
In December, annual inflation equalled 7.0 percent. In addition to the one-off factors from early 2019, the nominal effective exchange rate depreciation had a significant impact on inflation. In response, to neutralize inflationary pressures stemming from the exchange rate depreciation, from September 2019, the NBG began tightening its monetary policy stance. In December, the nominal effective exchange rate strengthened slightly, which reduced the pressure on inflation. However, the nominal effective exchange rate remains undervalued. In recent periods, economic growth accelerated and lending is robust. If these dynamics create additional inflationary pressure, the tight monetary policy stance may be maintained for more extended period.
According to the NBG forecast, other things being equal, the inflation will start to decline from the beginning of the year and approach the target by the end of the year. This will be ensured by the monetary policy which will remain tight until the medium term inflation expectations decline to three percent target.
Meanwhile, the exports and remittances revealed moderate growth, and, despite the decline in summer, the annual change in tourism revenues became positive since October 2019. It is noteworthy that in 2019, similar to 2018, the current account improved significantly.
The NBG will continue to monitor the developments in the economy and financial markets and will use all means and instruments at its disposal to ensure price stability.
The next meeting of the Monetary Policy Committee is scheduled on March 18, 2020.
See all the news
Silknet signed Memorandum of Understanding with Global Communications Company One Web
Reuters: Dutch city tells floating Georgian monastery to cast off
The NBG hiked further as the GEL stays undervalued
World Bank expects slowdown of Georgia's economic growth in Q4 of 2019
Georgia-Estonia Business Forum is Held Today
Nestle Sees $250 Million Boost for Starbucks Products
GDP will be Calculated by the Updated Methodology from Today – What the Reform Will Cause
BM.GE: Giorgi Gakharia has selected a new business ombudsman
Tourist Number Hits a Record within 10Months and Exceeds 8 MLN Despite Putin’s Flight Ban
Galt & Taggart does not rule out slowdown of economic growth to 4% in 2020
Mamuka Khazaradze: finally, I also found out what we were accused of
Salmonella detected in frozen chicken meat imported from Ukraine
Talakvadze about Tskaltubo Development Project: special rules won’t apply to Ivanishvili
m2: we do not have any plans for Center Point at this stage
Georgia Capital to open 6 new hotels in Georgia under the new brand Amber Group
The CEO of m2 Group is changed - Shota Berekashvili replaces Irakli Burdiladze
The 30 Top Emerging Travel Destinations for 2020
"We hold rather comfortable shares on the market " – Does TBC Bank want to Buy Cartu?
Interview with Ahmed Bin Sulayem - Executive Chairman and CEO of DMCC
Agreement signed between Silknet and Euronews to launch “Euronews Georgia”