The Monetary Policy Committee of the National Bank of Georgia (NBG) decided to keep the monetary policy rate (the refinancing rate) unchanged. The monetary policy rate stands at 11%.
According to the NBG's report, Brent oil prices and FAO decline will gradually be transmitted to the local market and favorably affecting the dynamics of inflation.
"Inflationary pressure is still quite high both in Georgia and in the rest of the world. The sanctions imposed against Russia and the additional supply-side disruption stemming from the Russia-Ukraine war have significantly raised international prices on food, energy and other commodities. Besides this, against the backdrop of consecutive shocks, inflation has long deviated from the target level, which further amplifies inflationary risks. However, recently some positive trends are observed on international markets. Brent oil prices and shipping costs continue to decline. Although remaining at a high level, the international food price index decreased on a monthly basis by 9%in July, and by 1.9% in August, according to the Food and Agricultural Organization (FAO). It is expected that these trends will gradually be transmitted to the local market and favorably affecting the dynamics of inflation",- the NBG notes.
The annual inflation rate made up 10.9% in Georgia in August.
