Georgia's National Bank increases refinancing rate

The National Bank of Georgia has increased the refinancing rate by 0.5 percentage points to 7%.

The depreciation of the exchange rate has boosted inflationary expectations, the NBG says, therefore the refinancing rate has been increased, which will continue until the pressure of the exchange rate on inflation decreases, Agenda.ge reported.

In August 2019, annual inflation amounted to 4.9% in Georgia, which is more than the inflation target of three per cent set by the National Bank of Georgia for 2019-2021.