At this stage, the Banking Association does not expect the National Bank of Georgia to raise the refinancing rate. Speaking to BMG, Aleksandre Dzneladze, president of the association, noted that while inflationary risks have increased due to the ongoing conflict in the Middle East, there is currently no indication that the central bank will tighten monetary policy.
“Refinancing has been maintained at 8% for some time, representing a strict monetary stance. At the moment, we do not expect a rate increase, but if inflationary pressures intensify and risks rise, a tightening of monetary policy could become necessary,” Daneladze said.
He also noted that interest rates on loans are unlikely to decrease in the near term. “While real rates may gradually adjust, we do not anticipate sharp changes in interest rates, given both domestic and international monetary conditions, including stable rates by the Federal Reserve and the European Central Bank,” he explained.
For context, on March 25, the National Bank’s Monetary Policy Committee kept the refinancing rate at 8%, citing inflationary pressures from the Middle East conflict but not yet seeing a need for policy adjustment.
