National Bank of Georgia decided not to change the refinancing rate

https://sputnik-georgia.ru/20210915/natsbank-gruzii-reshil-ne-menyat-stavku-refinansirovaniya-259616653.html

National Bank of Georgia decided not to change the refinancing rate

National Bank of Georgia decided not to change the refinancing rate

According to the forecasts of financiers, until the end of 2021, inflation in Georgia will remain at a high level and will begin to decline in the spring of 2022 09/15/2021, Sputnik Georgia

2021-09-15T16: 21 + 0400

2021-09-15T16: 21 + 0400

2021-09-15T16: 21 + 0400

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TBILISI, 15 Sep – Sputnik. The Monetary Policy Committee of the National Bank of Georgia decided not to change the refinancing rate and leave it at 10%, the regulator said. The National Bank has eased monetary policy since April 2020, after a long period of tightening to neutralize inflationary pressures caused by the depreciation of the exchange rate. The refinancing rate in the period from September to December 2019 increased from 6.5 to 9%, then decreased to 8% in August 2020, and in March 2021 began to rise again. Prices in Georgia are breaking records: what will stop inflation in the country & gt; & gt; According to the National Bank, the inflation rate in August was 12.8% with the target of 3%. The regulator associates the increase in inflation with the rising world prices for food and oil since the beginning of the year, as well as increased prices for the transportation of imported goods. As the National Bank notes, inflation remains a serious global problem in recent years, and the price growth trajectory in many developed and developing countries has far exceeded forecasts. As of August, despite the recent strengthening of the lari exchange rate, the growth in prices for imported products reached 18.7% per year, which is significantly higher than the increase in prices for local products (8.2%). “Considering that the contribution of temporary factors to inflation will continue to be decisive, and at the same time monetary policy is in a tightening phase, the Committee decided to keep the rate at the current level. The next meeting of the committee will take place on October 27. The refinancing rate is the annualized interest rate that credit organizations pay to the National Bank for loans provided to them. The rate is the main instrument of the National Bank’s monetary policy and is considered a benchmark for market rates in the financial sector. Subscribe to video news from Georgia on our YouTube channel.

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According to the forecasts of financiers, inflation in Georgia will remain at a high level until the end of 2021 and will begin to decline in the spring of 2022.

TBILISI, September 15 – Sputnik. The Monetary Policy Committee of the National Bank of Georgia decided not to change the refinancing rate and leave it at 10%, the regulator said in a statement.

The National Bank has eased monetary policy since April 2020, after a long period of tightening to neutralize inflationary pressures caused by the depreciation of the exchange rate. The refinancing rate in the period from September to December 2019 increased from 6.5 to 9%, then decreased to 8% in August 2020, and in March 2021 began to rise again.

Prices in Georgia are breaking records: what will stop inflation in the country >>

According to the National Bank, the inflation rate in August amounted to 12.8% with a target of 3%. The regulator associates the increase in the inflation rate with the growing world prices for food and oil since the beginning of the year, as well as the increased transportation prices for imported goods.

As the National Bank notes, inflation remains a serious global problem in recent years, and the trajectory of price increases in many developed and developing countries has far exceeded forecasts. As of August, despite the recent appreciation of the lari exchange rate, the rise in prices for imported products reached 18.7% per year, which is significantly higher than the increase in prices for local products (8.2%).

“Given that the contribution of temporary factors to inflation will continue to be decisive, and at the same time, monetary policy is in a tightening phase, the Committee decided to keep the rate at the current level,” the statement said.

How many loans have risen in price in Georgia due to the increase in the refinancing rate?

According to the forecast, inflation will remain high until the end of 2021 and begin to decline in the spring of 2022.

The next meeting of the committee will take place on October 27.

The refinancing rate is an annualized interest rate that credit organizations pay to the National Bank for loans provided to them. The rate is the main instrument of the National Bank’s monetary policy and is considered a benchmark for market rates in the financial sector.

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