TBILISI, July 26 (Xinhua) -- The key refinancing rate will remain unchanged at 7 percent, the National Bank of Georgia (NBG) announced in a statement on Wednesday.
"In June, the annual inflation rate has increased, reaching 7.1 percent," the statement said, while adding that the increase is temporary and that it will experience decline in the second half of 2017.
"Therefore, there is no need for further tightening of monetary policy," the NBG said in the statement.
"The National Bank of Georgia will monitor the developments in the economy and financial markets and will use all available instruments at its disposal to ensure the price stability," the bank added.
NBG started tightening its monetary policy from February 2015, pushing the key refinancing rate from 4 percent in February up to 8 percent by the end of the year. On May 2, 2017, the key rate was set at 7 percent and maintained until now.
According to the data from the Georgia's National Statistics Bureau, Georgia's averaged inflation rate in the first half surged to 5.7 percent, much higher than expected. Enditem
