National Bank of Georgia Increases Refinancing Rate to 9%

The National Bank of Georgia has increased the refinancing rate by 0.5 percentage points to 9%, announces the NBG.

The decision was made at a meeting of the Monetary Policy Committee today.

The annual inflation in November reached 7% which was mainly influenced by the depreciation of the Georgian lari.

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.

Target inflation was defined at 3 % by the NBG.

The forecast says that inflation will start to decline beginning in March of next year, and will be close to target inflation by the end of 2020.

By Ana Dumbadze