Georgian National Bank leaves monetary policy rate unchanged

The monetary policy committee of the Georgian National Bank decided to leave the refinancing rate unchanged.

The monetary policy rate is 4 percent, the national bank told Trend on Aug. 14.

The committee made a decision on gradual withdrawal from the soft monetary policy at a meeting in February. The pace of this process depends on the economic activity and the rate of recovery of demand. The risks were revealed in subsequent periods. Their implementation stipulated the lack of both external and domestic demand. This slowed down the process of approaching the rate of inflation to the target level.

The national bank believes that there is a need to move away from the soft monetary policy. However, according to the current forecasts, this process will be longer than expected. Thus, the committee found it necessary to leave the rate unchanged to achieve the target level of inflation.

The annual inflation rate was 2.8 percent in July.

The next meeting of the Monetary Policy Committee of the Georgian National Bank will be held on September 24, 2014. (Trend.az)