National Bank President: Monetary Policy Rate to Be Lowered Stage by Stage

“The key objective of National Bank of Georgia (NBG) is to maintain stable prices as a main precondition for long-term economic growth and for creating new jobs,” NBG President Koba Gvenetadze said.

Annual inflation rose and constituted 7.1% in June 2017. According to NBG information, inflation rose because of single-time factors, namely increased prices on fuel and tobacco products as a result of raising excise tax, and the growing prices of oil products on international markets, Koba Gvenetadze claimed.

“The ratio of these products in the inflation index is 2.6% and it is not inflation in its economic content. In the first half of 2017, the economic growth indicators point to huger-than-expected growth, however, influence of the demand party on inflation remains weak, because GDP inclination from potential level still remains negative,” Gvenetadze said. (cbw.ge)