Georgian National Bank cuts monetary policy rate

The Monetary Policy Committee of the Georgian National Bank decided to reduce the refinancing rate by 25 basis points to 5.25 percent on December 19, 2012.

The Georgian National Bank told Trend that a decision was made for several reasons.

"In November, the annual average financial index and the base inflation rate were low," the National Bank's statement said. "Annual average financial index in November was -0.5 percent, which was mainly stipulated by a decline in food prices and strengthening the nominal exchange rate of the national currency for the first six months. Following the last meeting of the Monetary Policy Committee, the forecast inflation index reduced. According to the current projections, it is expected that annual inflation in 2013 will be lower than the target (6 percent)."

A regular meeting of the Monetary Policy Committee of the National Bank will be held on February 13, 2013.


/Trend/