Georgia Interest Rate

The National Bank of Georgia kept its key interest rate at 8% in October 2024 for the fourth consecutive meeting, following a 25bps cut in May. Since the beginning of 2023, inflation has consistently remained below the central bank’s 3% target. In September, the headline inflation slowed to 0.6%, the lowest in six months, down from 1% in August. The price stability is largely attributed to the central bank’s effective monetary policy, which involved timely tightening, gradual normalization, and stabilizing long-term inflation expectations. Additionally, economic growth has exceeded expectations this year, leading to a revised growth forecast of 8.5%. However, heightened uncertainty, both domestically and globally, continues to pose risks. Thus, the central bank continuously monitors ongoing economic processes and financial markets and reaffirmed its readiness to adjust interest rates as necessary to maintain price stability.