National Bank of Georgia Keeps Key Rate at 8%

The National Bank of Georgia kept its policy rate unchanged at 8.0% at its February 2026 meeting, maintaining a moderately tight stance amid persistent inflation pressures. Annual inflation stood at 4.8% in January, driven mainly by food prices, while core inflation remained within target at 2.1% and services inflation edged up to 3%. The NBG noted that rigid price measures rose moderately, increasing risks to inflation expectations, prompting a slight upward revision to its 2026 inflation forecast. Still, inflation is expected to gradually approach the 3% target from the second quarter and average 3.7% this year. Economic growth is projected at 5% in 2026 as activity returns to its long-term trend and credit expansion stabilizes. The MPC highlighted both upside risks from global commodity prices and geopolitical tensions and downside risks from a weak dollar, lower oil prices, and domestic labor market trends, reiterating that future policy moves will depend on incoming data.

The National Bank of Georgia maintained its policy rate at 8% during its December 2025 meeting, reflecting a measured approach amid lingering inflation pressures. Inflation slowed to 4.8% year-on-year in November, while core and service sector inflation remained near target at 2.3% and 2.6%, respectively. Rising food prices continue to influence headline inflation, though these effects are expected to be temporary. The NBG forecasts that inflation will average around 4% this year and gradually ease toward 3.5% in 2026. Economic activity is steadily returning to its long-term potential, helping to ease demand-side price pressures. Considering both upside risks from global commodity prices and geopolitical tensions and downside risks from a softer USD, falling international food prices, and domestic labor market developments, the Monetary Policy Committee deemed it appropriate to maintain a moderately tight monetary policy stance.

The National Bank of Georgia held its policy rate steady at 8% during its November 2025 meeting, signaling a cautious approach amid persistent inflationary pressures. Annual inflation climbed to 5.2% in October, the highest since March 2023, moving further above the central bank’s 3% target. Underlying inflation indicators have also remained close to the target level. The central bank expects headline inflation to average around 4% in 2025, before easing to 3.5% in 2026. Meanwhile, economic activity is gradually converging toward its long-term potential, helping reduce demand-driven price pressures, with GDP rising 7.7% in the January–September period. After assessing upside inflation risks from US tariffs and geopolitical tensions, along with domestic economic risks against downside risks from lower oil prices, a softer USD, and domestic labor market developments, the MPC deemed it appropriate to maintain a moderately tight policy stance.