The National Bank of Georgia says it is ready to tighten monetary policy if necessary, while continuing to monitor global economic and geopolitical developments. NBG President Natia Turnava made the statement in an interview with BMG.
Turnava noted that March inflation stood at 4.3%, which was in line with the central bank’s expectations and continues a downward trend from previous peaks. She added that core inflation, which better reflects expectations, remained below the target level at 2.4%, while services inflation stood at 3.3%, close to the target.
According to her, current inflationary pressure is mainly driven by supply-side shocks linked to global developments, including tensions in the Middle East and disruptions in energy and commodity markets. She stressed that central banks typically do not respond immediately to such shocks and instead observe how the situation evolves.
Turnava said the NBG’s recent decision to keep the policy rate unchanged reflects this cautious approach. However, she emphasized that the bank remains prepared to act if inflationary risks persist, while hoping that global conditions stabilize and further tightening will not be necessary.
