Georgian National Bank keeps base rate unchanged at 7.5%

The committee for monetary policy of the Georgian National Bank has
left the refinancing rate at 7.5%. The bank says that the decision is
due to the rising inflation level of 10.5% in November, Business
Georgia reports.

Prices for food rose by 9.1%. Prices for services rose by 0.6%.
The committee notes that the money supply rate is falling. It also
mentioned the rising rate of commercial bank crediting of the economy
and the increasing amount of credits in foreign currency.

The National Bank is continuing to toughen monetary policy. The
reserve norm of foreign currency increased to 15%. The norm will reach
10% on November 20 next year, followed by 15%.

Development of the monetary market will be achieved by reducing the
corridor rate from 4% to 3%. The bank is continuing to monitor the
changes in economic processes and the financial market. The next
session of the committee for monetary policy will be held on January
18, 2011.