Bank of Georgia Group Financial Results slide image

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 7
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