The Monetary Committee of the National Bank has decided to increase the refinancing rate to 11%.
Prior to that, the rate was 10.5%.
The bank says the rate increase is linked to the ongoing war in Ukraine and inflation expectations.
The NBG says the monetary policy is in a tightening phase and it will remain so until the existing risks are mitigated.
“The monetary policy will need to be tightened until the risks to rising inflation expectations are sufficiently mitigated,” the National Bank said.
The next meeting of the Monetary Policy Committee will be held on May 11.
An increase in the refinancing rate, or monetary policy, in turn, makes interest-bearing loans in the national currency more expensive.
As a result, loan services have become more expensive for more than 180,000 people in Georgia.
By Ana Dumbadze
