Banking Association of Georgia does not expect a reduction in the refinancing rate in the near future, according to its president, Aleksandre Dzneladze, who spoke during a visit to "Business Morning."
Dzneladze noted that current inflation levels remain high, which will directly influence the decisions of the Monetary Policy Committee (MPC).
"The economic growth rate still remains strong, but inflation is higher compared to the previous period. This volatility was expected due to the high inflation in 2022, followed by a price decrease in 2023 after a relatively stable period. While this inflation is painful, it does not sharply deviate from the target rate. Therefore, we should not expect a reduction in the monetary policy rate in the near future," Dzneladze explained.
He also stated that aside from the acquisition of Liberty Bank by Basisbank, no other major transactions are anticipated in the financial sector this year.
"The banking sector is expected to develop in a relatively calm manner. We do not foresee any sharp movements until the end of the year," Dzneladze added.
