On February 1, 2023, 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.

Annual inflation in Georgia has already passed the peak and follows a downward trend, mainly driven by the gradual neutralization of the external factors. In particular, according to the Food and Agriculture Organization (FAO), the international food price index has been decreasing since March last year. At the same time, international shipping costs continue to decline and as of December 2022 have fell down almost to the pre-pandemic level. These trends, against the backdrop of a stronger exchange rate, are being transmitted to the local market and reduce imported inflation. Both prolonged period of tight monetary policy and fiscal consolidation support the reduction of headline inflation. According to the updated macroeconomic forecast, other things being equal, given tight monetary policy annual inflation will continue to decline and approach the target level in the second half of 2023.

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-6