Reduction of the refinancing rate is likely to take place at a slower pace, - this is how the General Director of the Bank of Georgia, Archil Gachechiladze responded to the recent steps taken by the National Bank of Georgia in terms of monetary policy reduction.
The head of the bank considers the regulator's decision "timely" and notes that competition will increase in the market further.
"Recently, we have seen that the mandatory reserves of USD deposits were slightly reduced, which led to the additional supply of USD for the businesses. It happened in October-November, which intensified the competition. We also see that the rate of GEL has decreased to such an extent that it causes an additional incentive for the demand for loans. In my opinion, very timely steps were taken by the National Bank. But it is very important to observe the results", said Archil Gachechiladze.
