The Georgian National Bank has decided to raise the rate of monetary
policy from 7.5% to 8% due to annual inflation reaching 12.3% in
January, Georgia Online reports.
Consumer prices in Georgia rose by 2.1%.
The bank recommends studying the reasons for such high inflation.
Reduction of inflation is only possible if economic growth drops. The
main consumer products are food. The National Bank will start carrying
out a tough monetary policy in spring to prevent inflation risks.
The bank noted that commercial banks increased credit rates as a
result of the bank's monetary policy. It will soon affect the real
economy.
