The National Bank of Georgia (NBG) maintained its monetary policy rate at 8%, with inflation remaining below the target of 3%. November’s year-on-year and overall inflation are at 3% and 1.3%, respectively. The prices of domestic goods and services moderately increased by 1.8%.
The most important aspects of the report are as follows:
- Economic Growth: The average economic growth for the first ten months of 2024 was 10%.
- Inflation Outlook: Inflation is projected to be 1.2% in 2024 and stabilize near 3% during the medium term.
- Risks: Geopolitical tensions, rising global food and oil prices, and increasing shipping expenses.
The NBG mentioned that upon easing the risks, the rate will lower gradually to the neutral level of 7%, however, tightening is still a possibility if inflation risks keep going. The next policy meeting is scheduled for January 29, 2025.
