National Bank of Georgia Slashes Refinancing Rate to 7% From 8%

February 18, 2009

As in December, Georgia’s central bank lopped 100 basis points from its benchmark rate and signaled that the easing trend is not done.  A released statement predicted a 2% contraction this year in real GDP, observed falling price expectations and much lower on-year inflation (4.4%) than seen in the recent past, and spoke of weak credit activity and a likely decline in the stock of money.  Policymakers meet again on March 18th.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.


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