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2025-12-17 16:39:36
[The Central Bank of Georgia Keeps Key Interest Rate Unchanged at 8%] ⑴ The Central Bank of Georgia kept its policy rate unchanged at 8% at its December meeting, a measured measure taken amid persistent inflationary pressures. ⑵ Inflation slowed to 4.8% year-on-year in November, while core inflation and services inflation remained around 2.3% and 2.6% respectively, close to the target level. ⑶ Rising food prices continue to affect overall inflation, but these effects are expected to be temporary. The central bank forecasts that inflation will average around 4% this year and gradually slow to 3.5% by 2026. ⑷ Economic activity is steadily returning to its long-term potential level, helping to alleviate price pressures on the demand side. ⑸ Considering the upside risks from global commodity prices and geopolitical tensions, and the downside risks from a weaker dollar, falling international food prices, and domestic labor market developments, the Monetary Policy Committee believes that maintaining a moderately tight monetary policy stance is appropriate.
