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George Kadagidze: Inflation Target Will Be at 3% Point in 2017

George Kadagidze, president of National Bank of Georgia links the loan rate increase to the strengthening of monetary policy and GEL devaluation.

George Kadagidze noted at the final meeting, as the President of NBG with the members of Business Association, that the regulatory bank guides with mortgage and business crediting indexes while determining loan rate trend.

President of NBG has declared afresh that pressure on GEL is raised, basic shock is already reflected on the exchange rate and further devaluation of GEL is not expected in other equal conditions.

Kadagidze says, that inflation rate (6.3%) is a bit above comparing to the targeted index (5%), which totally considers to the current predictions. In the 2nd half of 2016, inflation will start decline and envisaging, country’s economic conditions by 2017, target inflation will be at 3% point.

Kadagidze has also concerned to the expecting strengthening of monetary policy by the USA’s Reserve System and noted, that all shocks are also reflected in the USD indexes, despite what decision will be adopted by the Reserve System (whether increases the main rate or preserves it unchanged).

Nino Shubitidze