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TBILISI, June 14 (Xinhua) -- The National Bank of Georgia (NBG) announced on Wednesday it will keep its key refinancing rate unchanged at 7 percent, after increasing it by 25 basis points last month.
"This decision is based on macroeconomic forecasts, according to which it expects that this year's inflation rate will be above its target, due to the supply side pressures," said the NBG in a statement.
"In the last few months, as a result of one-off effects, the inflation rate increased and reached 6.6 percent in May," said the Bank.
It forecasted the inflation rate will experience decline in the second half of 2017 and the key rate will gradually return to its neutral level in the medium term. Enditem
