On October 27, 2021, the Monetary Policy Committee (MPC) of the National Bank of Georgia decided to keep the refinancing rate unchanged. The monetary policy rate is 10.0 percent.

The world economy has faced many challenges due to the pandemic. One of the important factors in this regard is the accelerated pace of price increases, which remains a recent concern in both developed and developing countries. Increased inflation is also a challenge for Georgia. Annual inflation stood at 12.3 percent in September. High inflation is mainly due to one-off factors, which became evident globally in 2020-2021. According to preliminary estimates, the contribution of these exogenous factors to headline inflation is about 8 percentage points. In this regard, a significant increases in USD prices of food items and a rise in oil prices, that accelerated even further recently, on the international markets are particularly noteworthy. The rapid growth of international transportation costs is also adding up to the pressure.

Source: National Bank of Georgia

See detailed information: https://nbg.gov.ge/en/media/news/the-national-bank-of-georgia-keeps-its-monetary-policy-rate-unchanged-at-10-0-perce-1