ECONOMY
11.12.19 14:55
The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 9 per cent, announces the National Bank of Georgia.
The decision was made at a meeting of the Monetary Policy Committee today.
The annual inflation in November reached 7 per cent, which was mainly influenced by the depreciation of the Georgian lari, says the NBG.
The National Bank of Georgia started increasing the refinancing rate in September this year, which aims to decrease the pressure of the exchange rate on inflation.
As of today, one dollar is worth of 2.9089 Georgian lari, says the NBG.
Despite the current strengthening of the Georgian lari, the exchange rate is still depreciated which promotes inflationary expectations higher than the target inflation,” says the NBG.
Target inflation was defined at three per cent by the NBG.
According to the NBG’s forecast, inflation will start to decline beginning in March of next year and will be close to target inflation by the end of 2020.
By steering interest rates, the NBG influences the level of inflation. Specifically, the change in short-term rates is transmitted to long-term rates, which, ultimately, affects the interest rates on loans.
When projected inflation is above the target inflation rate, the NBG raises the refinancing rate to combat a future surge in the general price level.
The next meeting of the NBG’s Monetary Policy Committee is scheduled for January 29, 2020.
source: AGENDA
Read: 73
Write comment
(In their comments, readers should avoid expressing religious, racial and national discrimination, not use offensive and derogatory expressions, as well as appeals that are contrary to the law)
News feed
-
18:1017.05.24
-
17:0017.05.24
-
16:0617.05.24
-
15:1517.05.24
-
14:0017.05.24
-
13:1017.05.24
-
China plans to open Chinese car market in Georgia
12:2517.05.24
-
March to be held in Tbilisi and regions in connection with the day of sanctity of the family
10:5017.05.24
-
Shalva Papuashvili: The sanctity of the family is the foundation of our state
10:0017.05.24
-
Georgian PM, Turkish President to discuss issues of strategic interests, FM Darchiashvili says
18:0016.05.24
-
MIA arrests two for property damage in group
17:3816.05.24
-
Georgian PM pays tribute to the grave of Mustafa Kemal Atatürk
17:0016.05.24
-
16:2616.05.24
-
The National Bank sold 60,000,000 USD at the foreign exchange auction
15:4016.05.24
-
Roman Gotsiridze: The exchange rate of the GEL is unmanageable
15:0016.05.24
-
Tbilisi Mayor: Georgian people to decide change of government through democratic elections
14:2116.05.24
-
The Parliament has completed the public review of the draft law prepared against LGBT propaganda
13:4916.05.24
-
Is Georgia between 'Euromaidan' and 'green men'?
13:4516.05.24
-
Irakli Kobakhidze went on an official visit to the Republic of Turkey
13:0016.05.24
-
12:1316.05.24
-
11:3716.05.24
-
10:5516.05.24
-
Charles Michel reports on the telephone conversation with Salome Zurabishvili and Irakli Kobakhidze
10:0016.05.24
-
Opposition MPs meet FMs of Iceland, Latvia, Lithuania, Estonia
18:0015.05.24
-
17:3715.05.24
-
16:4915.05.24
-
16:0715.05.24
-
15:3515.05.24
-
Separatist South Ossetia may be abolished due to total absence of people
14:5315.05.24
-
14:0015.05.24
-
NATO Spokesperson: We urge Georgia to change course and to respect the right to peaceful protest
13:1515.05.24
-
Estonian Foreign Minister: This law is a symbol of the choice between Russia and the European Union
12:3015.05.24
-
11:3915.05.24
-
11:0815.05.24
-
10:3515.05.24
-
Will France recognise Georgia's territorial integrity?
19:2414.05.24