The National Bank of Georgia (NBG) has kept its monetary policy rate unchanged at 8.25%, citing ongoing inflation and external risks. Tamta Sopromadze, head of the NBG’s Macroeconomics and Statistics Department, said the decision reflects sharp increases in global energy prices amid geopolitical tensions.
Georgia’s annual inflation reached 5.6% in August, above the NBG’s 3% target. Sopromadze said supply-side shocks are the main driver, while August core inflation stood at 3.6%, indicating that inflationary pressures remain moderate.
The NBG expects average annual inflation to reach around 5.2% in 2026 before gradually returning to the 3% target over the medium term. Meanwhile, economic activity remains strong, with growth at 8% in July and averaging 7.9% in the first seven months of the year.
Sopromadze said the central bank will continue monitoring inflation and external shocks. If supply pressures persist and inflation expectations rise, the NBG may further tighten policy, while normalization could begin once the shocks subside. The next monetary policy meeting is scheduled for October 21.
