On October 26, 2022, the Monetary Policy Committee of the National Bank of Georgia (NBG) decided to keep the monetary policy rate (the refinancing rate) unchanged. The monetary policy rate stands at 11.0 percent.

Inflationary pressure is still high in most of the world, to which the leading central banks are responding with tightened financial conditions. This worsens global economic growth outlook and creates stagflation risks. Inflation in Georgia has retreated from its peak, however, it still remains at a high level, amounting to 11.5 percent in September. Recently, positive trends are being observed on the international commodity markets, with commodity prices and international shipping costs declining. At the same time, although remaining at a high level, the international food price index according to the Food and Agriculture Organization (FAO) has been falling for 6 consecutive months. It is expected that in line with the appreciated exchange rate, these trends will gradually be transmitted to the local market, reducing inflation. However, given the current geopolitical circumstances, uncertainty still remains high. Inflation has long been deviating from its target level, with this deviation further amplifying risks around the declining trend of inflation.

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-11-0-perce-4