Georgian National Bank raises key rate to 6%
The Monetary Policy Committee of the Georgian National Bank has decided to raise the key rate to 6% at its meeting today.
The Georgian National Bank explained it was due to the macroeconomic forecast, according to which inflationary expectations have increased and external and internal risks influence the inflation forecast. In particular, it is noted that the major trading partners of the country still have limited overall demand due to the negative economic situation.
The National Bank noted that if there will be no extra shocks, then the monetary policy interest rate is planned to be within 6.5% by the end of the year. In addition, the level of the key rate will depend on the projected inflation rate.