Interest Rate Cut by the National Bank of Georgia
January 31, 2024
Officials at the National Bank of Georgia reduced its key interest rate by another 50 basis points to 9.0%. 150 basis points of easing had earlier been done during the final seven months of 2023. Rate reduction since last May of 200 basis points reverses two-thirds of the prior 300 basis points of tightening implemented between March 2021 and March 2022. CPI inflation ended last year at a significantly below-target 0.4%, but the gap from the 3% medium-term objective is projected to narrow this year. Rate normalization is expected to continue at a measured pace that will be governed in part by the evolution of expected inflation: “If factors amplifying inflation expectations become apparent, the NBG will maintain tight monetary policy stance for a longer period or further tighten its policy.”
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: National Bank of Geogia
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