Georgia’s central  bank predicts lower inflation

Georgia’s central bank predicts lower inflation

access_time2020-01-21 17:00:53

In its  baseline scenario, the National Bank of Georgia (NBG) predicts this year inflation will gradually return to target.

In the first half of 2020, inflation will be higher than the target 3% mainly due to the national currency’s devaluation and the growth of intermediate costs in this period.

But in the second half of 2020, inflation is expected not only to reach the target level, but will fall lower due to the tightening of the central bank’s monetary policy.

 In the medium term, growth in economic activity and a decrease in the impact of the national currency on inflation are expected that  will boost the inflation stabilization at the target.

 In 2019, inflation significantly exceeded the target and to  fight it, the National Bank several times raised its refinancing rate which currently stands at 9%.


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