Wednesday, December 18, 2013

Georgia holds rate as inflation seen moving to target

    Georgia's central bank held its refinancing rate steady at 3.75 percent and said it was maintaining a relaxed policy stance given that inflation is expected to converge to the bank's target in the medium term.
     However, the National Bank of Georgia also said it was monitoring economic development and would tighten monetary policy to ensure inflation remains on target.
    The central bank, which has cut rates 150 basis points this year, said price dynamics were developing according to central bank projection and moving closer toward its target by the end of 2014.
    In November Georgia's inflation rate rose 0.5 percent from the previous month for an annual rate of 0.6 percent, up from 0.2 percent in October. The central bank targets inflation of 6.0 percent end-2014.
    Georgia's economy expanded by an annual 1.50 percent in the second quarter but the central bank said economic activity had increased slightly in the fourth quarter, with imports in November up by 22 percent from last year and exports up 60 percent.



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