Selim Cakir, Resident Representative at International Monetary Fund (IMF) believes that under the management of Koba Gvenetadze, the National Bank successfully handled foreign shocks. Cakir also spoke about inflation and said it was a global challenge, and the central bank of Georgia choose the right policy.
“Under the management of Koba Gvenetadze, the economy had to go through some shocks, but I think the country and the central bank were well prepared for these shocks. The financial sector was strong, which was especially important amid the pandemic. Fiscal buffers were also powerful that allowed the government to increase fiscal deficits during the pandemic.
The central bank successfully managed to maintain the inflation period at a low level during the shock. Inflation is still a challenge, and as Mr. Gvenetadze mentioned, it is important for some time to maintain a monetary policy rate at a high level. We will see if there will be a need for growth, but the central bank policy is correct and we are glad that inflation is characterized by a declining tendency. As I mentioned, the policy of the Central Bank is relevant to this situation and as we are told, the bank observes events. We see that this approach will still be maintained. The government is trying to increase revenue and we respect it", he said.
