Georgia’s monetary policy framework has demonstrated flexibility and faster responsiveness than those of some major developed economies, Natia Turnava, President of the National Bank of Georgia, stated.
Speaking in a podcast interview with Cartu Bank, Turnava said that Georgia’s central bank was able to respond more quickly to post-pandemic economic conditions than larger institutions such as the Federal Reserve and the European Central Bank.
Turnava said that Georgia reacted rapidly to inflationary pressures following the COVID-19 pandemic.
She further stated that the National Bank raised the refinancing rate sooner than many developed economies when tightening was required and later reduced it more efficiently as economic conditions improved. She attributed this to a lower level of bureaucratic complexity and greater institutional flexibility.
Turnava also referenced recent assessments by the International Monetary Fund, which she said support the view that Georgia’s monetary policy response was timely and effective.
The Monetary Policy Committee of the National Bank decided on February 11 to keep the refinancing rate unchanged at 8%. The rate has remained at this level since May 2024, reflecting what the central bank describes as a cautious and consistent policy approach.
The decision comes despite an increase in inflation. Official data states that annual inflation rose to 4.8% in January, up 0.8 percentage points compared to December.
