National Bank of Georgia lowers refinancing rate
The monetary policy committee of the National Bank of Georgia (NBG) has lowered the refinancing rate by 50 base points to 7.5%.
According to the NBG evaluations, the policy rate neutral level is around 5-6% in the midterm period. As a result, the committee has taken a decision on lowering the policy rate by 50 base points. The monetary policy further alleviation depends on the new inflation forecast indicators.
At the same time, the monetary policy committee has decided to lower the minimal reserve requirement on GEL-denominated resources to 7% from 10%. And to smooth expected risks on financial stability, the minimum reserve requirement on USD-denominated resources grows to 20% from 15%, the Caucasus Business Week reports.