National Bank of Georgia (NBG) Governor Natia Turnava told Parliament that adequate monetary policy had secured price stability, with inflation expectations remaining within target ranges.

“Inflation remained at a stable low level in 2024, averaging 1.1 per cent. Core inflation averaged 1.6 per cent,” Turnava said whilst presenting the National Bank’s 2024 annual report to Georgia’s Parliament.

She said the low inflationary environment was primarily driven by domestic economic factors.

“The National Bank’s adequate monetary policy has ensured price stability, with inflation expectations remaining within target ranges. In 2024, the lari’s effective exchange rate was maintained at a relatively stable position, which supported low inflation,” Turnava stated.

Following the stabilisation of inflation expectations, she said the National Bank of Georgia began normalising monetary policy, reducing the rate by 1.5 percentage points to 8.0 per cent in the first half of 2024.

From the second half of the year, against a backdrop of increased global risks, Turnava said the National Bank adopted a cautious approach and kept the monetary policy rate unchanged.​​​​​​​​​​​​​​​​