Georgia's central bank delivers another 50bp rate cut

Georgia's central bank delivers another 50bp rate cut

Georgia's central bank continued to ease monetary policy by cutting the key refinancing rate by 50 basis points (bp) to 7%, the National Bank of Georgia (NBG) said on June 15, IntelliNews reports.

The regulator began reversing a year-long monetary tightening in April, when it delivered a similar rate cut. Amidst a quickly depreciating currency in 2015, NBG intervened several times to gradually increase the rate from 4% in February 2015 to 8% in December.

However, the Georgian lari began appreciating in March, and NBG has said that it would gradually reduce the rate to a more neutral level of 5% to 6% in the coming months. The bank said further cuts will depend on the development of inflation.

Annual consumer price inflation in the country eased to a one-year low of 2.1% in May. NBG's monetary committee will meet again in July. 

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