Natia Turnava: National Bank’s Consistent Monetary Policy Ensures Price Stability and Keeps Inflation Expectations Within Target

Inflation in 2024 remained at a consistently low level, averaging 1.1 percent, while core inflation—which excludes highly volatile food, energy, and tobacco prices—averaged 1.6 percent, according to Natia Turnava, President of the National Bank of Georgia. She made the statement while presenting the 2024 Activity Report to the Parliament of Georgia.

Turnava emphasized that the low-inflation environment was largely driven by domestic economic factors.

“As a result of the National Bank’s adequate and consistent monetary policy, price stability has been ensured and inflation expectations remain within the target range. Furthermore, the improved overall production potential of the economy has helped mitigate inflationary pressure arising from strong aggregate demand. Additionally, the effective exchange rate of the GEL remained relatively stable throughout 2024, which contributed to maintaining low inflation,” said Turnava.

She also noted that following the stabilization of inflation expectations, the National Bank began monetary policy normalization, reducing the policy rate by 1.5 percentage points to 8.0 percent in the first half of the year. However, due to rising global risks in the second half of 2024, the NBG adopted a cautious stance, keeping the rate unchanged.