The National Bank of Georgia will hold a meeting of the Monetary Policy Committee on December 20. The Committee will decide whether the refinancing rate will be reduced or not. As the Acting Governor of the NBG, Natia Turnava, explains low inflation rate allows the monetary policy to be eased again.
"The statistics of the last months clearly show that the policy aimed at reducing inflation was correct and effective. I mean both the monetary policy tightened by the National Bank and the government's anti-inflationary policy, including fiscal consolidation and measures to encourage competition.
For the last few months, we have had a really low inflation rate. Much lower than our 3% target. This gives us a good opportunity to continue, albeit cautiously and with moderate steps, to ease our monetary policy. This step allows to ease the financial situation in the country, so that we can reduce the loan interest for people who have taken loans in the national currency", Natia Turnava says.
The inflation rate in November amounted to 0.1%, which was 0.2% lower than in October.
