A meeting of the Monetary Policy Committee of the National Bank of Georgia is scheduled for tomorrow. At the previous meeting, which was held on February 1, the committee made a decision to leave the monetary policy rate unchanged, and at the moment the monetary policy rate amounts to 11%.
Galt & Taggart Economist Lasha Kavtaradze deeply believes that it would be more correct if the Central Bank follows the statement made in December, which provides declining of the monetary policy rate on the background of the inflation rate reduction.
"If the central bank is guided by the official statement made in December when it would be reasonable to reduce the rate now. In February, the approach was changed, so based on this statement, it will not reduce the rate and will leave it the same. However, it is not excluded that the National Bank will change its position. In my opinion, it will be more appropriate if we use the December announcement regarding the change in monetary policy," Kavtaradze said.
According to him, the inflation rate will approach the target rate determined by the National Bank in the last quarter of this year. As of 2018, the inflation target of the National Bank is 3%.
