In the second half of the year, inflationary pressure will increase. Late this year, we expect inflation to be within 4%, and the National Bank will no longer have the opportunity to reduce the monetary policy rate, - Eva Bochorishvili, head of the research department of Galt & Taggart, told BMG about this.
Eva Bochorishvili assumes that the monetary policy rate will remain at the current 8%.
"We think that the pace of price growth will continue in the second half of the year. Various factors affect this, including the increase in the prices of goods on the international markets, such as the prices of food and oil, which has an impact on the price rate in Georgia. Also, to some extent, the fluctuation of national currency also has an impact. We think that in the second half of the year, the inflationary pressure will increase, and by the end of the year we expect inflation to be within 4%. All this means that the National Bank will no longer have the opportunity to reduce the monetary policy rate, which is currently 8%. According to our expectation, the refinancing rate will remain at this level until the end of the year", said Eva Bochorishvili.
