Aleksandre Dzneladze, President of the Banking Association of Georgia, says the National Bank’s recent 0.25 percentage-point increase in the refinancing rate will not materially affect lending rates, as market interest rates were already slightly higher.
Speaking on “Business Morning,” Dzneladze said the tightening of monetary policy signals that the National Bank is prepared for further potential steps amid persistent inflationary pressures.
He noted that inflation expectations remain elevated and broadly aligned with global trends, driven more by rising production and energy costs than demand-side factors. Dzneladze also pointed to geopolitical tensions as a key driver of higher input costs worldwide.
According to him, while there may be no sharp changes by the end of the year, there should be no expectation of declining interest rates, as borrowing costs in both local and foreign currencies are likely to remain elevated.
