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National Bank Forecasts Low Inflation Rate

National Bank Forecasts Low Inflation Rate

The national bank of Georgia forecasts low inflation rate in the next months.

“In August consumer price inflation rate declined to 0.9% and this tendency meets the existing prognosis. Base effect completion makes important influence on inflation rate reduction. The weak joint demand  also promotes inflation slowdown. Under the current prognosis, inflation rate will be maintained on low level and it will reach the target indicator at the end of 2017.

Gradual alleviation of the tightened monetary policy  and fiscal stimulus  improve the joint demand and move to the target inflation indicator.

Further changes in the monetary policy rate depend on current developments in the economy, external risks and influence of shocks of trade partners countries on the Georgian economy.

The National Bank of Georgia will continue supervising the current economic tendencies and the finance markets and will use all attainable mechanisms to ensure price stability”, the NBG statement reads.

As reported, the NBG lowered the monetary policy rate by 25 base point to 6.5%.