The National Bank of Georgia said it was continuing its exit from a tight monetary policy by reducing the refinancing rate by 0.75 percentage points, down to 8.25%.
The Bank said both domestic and external factors had contributed to sustaining a “low inflation environment” in the country, with headline inflation “well below the target”.
"The low inflation environment helps the inflation expectations decline, which further significantly lowers the inflationary risks in the medium term. Other things equal, inflation is expected to remain below the target of three percent at the beginning of 2024, while stabilising close to it in the medium term”, the statement reads.
The body also shared its projections, saying with the gap between economic activity and its pre-pandemic trend being fully closed, it anticipated growth of economic activity in 2024 to gradually normalise around that of the potential gross domestic product.
The NBG said it would continue to monitor developments in the economy and financial markets and use “all available tools” to ensure price stability.
