Bank of Georgia Group Financial Results
Inflation continued to fall on the back of last year's high
base, declining commodity prices and strong GEL
The NBG proceeds with a gradual exit from tight monetary policy
Monetary policy rate
Annual CPI inflation
Inflation target
16%
16%
Annual
14%
5-year
average
Jun-23
Jul-23
14%
Headline CPI
7.0%
0.6%
0.3%
12%
12%
Core CPI
5.0%
4.1%
3.2%
10%
10%
8%
6%
4%
2%
0%
-2%
Jan-14
Jun-14
Nov-14
Apr-15
Sep-15
Feb-16
Source: GeoStat, NBG
Jul-16
Dec-16
May-17
Oct-17
Mar-18
Aug-18
Jan-19
Jun-19
Nov-19
Apr-20
Sep-20
Feb-21
Jul-21
Dec-21
May-22
Oct-22
Mar-23
Aug-23
8%
6%
4%
2%
0%
-2%
Consistent reduction in global commodity
prices on the back of GEL appreciation led to
continued fall in CPI inflation
Inflation expected to remain low amid
decreasing commodity prices, strong GEL
and fiscal consolidation
The NBG reduced its policy rate by additional
25 bps to 10.25% on August the 2nd, marking
the second cut in the current easing cycle
The central bank is expected to continue the
gradual exit from tight monetary policy while
keeping a close eye on remaining inflation
risks
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