Georgia's central bank continued to ease monetary policy by cutting the key refinancing rate by 50 basis points (bp) to 7%, the National Bank of Georgia (NBG) said on June 15.
The regulator began reversing a year-long monetary tightening in April, when it delivered a similar rate cut. Amidst a quickly depreciating currency in 2015, NBG intervened several times to gradually increase the rate from 4% in February 2015 to 8% in December.
However, the Georgian lari began appreciating in March, and NBG has said that it would gradually reduce the rate to a more neutral level of 5% to 6% in the coming months. The bank said further cuts will depend on the development of inflation.
Annual consumer price inflation in the country eased to a one-year low of 2.1% in May. NBG's monetary committee will meet again in July.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
S&P upgrades ratings of Freedom subsidiaries to ‘BB-’
S&P Global Ratings has upgraded the credit ratings of several subsidiaries of Nasdaq-listed Freedom Holding, raising ratings on Freedom Finance, Freedom Finance Europe, Freedom Finance Global and ... more
Kazakhstan’s Freedom fintech sets out to emulate and exceed Revolut in Europe
Freedom Holding Corp (Nasdaq: FRHC) is positioning itself to expand deeper into Europe’s financial services market with plans to launch a digital bank in France, backed by a €500mn ($572mn) ... more
Fintech Freedom Holding aims to make France key entry point into EU with €500mn investment
A French banking licence would open the way to a new phase in the international expansion of Nasdaq-listed fintech group Freedom Holding Corp. That’s the expectation of Freedom, a company ... more