Natia Turnava, the Acting President of the National Bank of Georgia, affirmed the central bank’s commitment to implementing monetary policy consistently, particularly in light of the recent reduction of the monetary policy rate by 0.75%.

She highlighted the gradual approach taken since May 2023, initially with smaller rate reductions of 0.25%, but accelerating the pace more recently. This decision was supported by the sustained low inflation environment, with month-to-month inflation consistently below 1%, and the normalization of inflationary expectations.

Turnava also addressed geopolitical risks, such as increased international transportation costs due to tensions in the Red Sea. However, these risks did not materialize further, contributing to the decision to reduce the monetary policy rate.

„The domestic inflation in February was lower than in January, decreasing from 2.7% to 2.4%. Additionally, indicators like the real exchange rate and the stable strength of the Georgian Lari (GEL) have supported the low inflationary environment.

Despite the steps taken recently, the central bank remains cautious, maintaining a moderately strict stance with the monetary policy,“ Turnava stated.

She reiterated the bank’s commitment to monitoring economic processes and financial markets continuously.