The National Bank of Georgia raised its refinancing rate by 50bps to 9 percent on December 11th 2019. It follows a 100bps hike in the previous meeting in an attempt to neutralise inflationary pressures due to exchange rate depreciation. Policymakers noted that annual inflation rose to 7.0 percent, its highest since June 2016, and it is expected to start declining from next March and near the 3-percent target by the end of 2020. The central bank reinforced that monetary policy tightening will continue until the pressure on the exchange rate is eliminated.

Interest Rate in Georgia averaged 6.60 percent from 2008 until 2019, reaching an all time high of 12 percent in April of 2008 and a record low of 3.75 percent in August of 2013. This page provides the latest reported value for - Georgia Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Interest Rate in Georgia is expected to be 9.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Georgia to stand at 8.25 in 12 months time. In the long-term, the Georgia Interest Rate is projected to trend around 6.00 percent in 2020, according to our econometric models.


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Georgia Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
9.00 8.50 12.00 3.75 2008 - 2019 percent Daily

Calendar GMT Actual Previous Consensus TEForecast
2019-09-04 08:00 AM 7% 6.5% 6.25%
2019-09-25 08:15 AM 7.5% 7% 7.25%
2019-10-23 10:00 AM 8.5% 7.5% 7.75%
2019-12-11 08:00 AM 9% 8.5% 9%
2020-01-29 08:00 AM 9% 8.75%


News Stream
2019-10-23
Georgia Hikes Key Rate by 100bps
The National Bank of Georgia raised its refinancing rate by 100bps to 8.5 percent on October 23rd 2019, bringing borrowing costs to its highest since November 2008. It follows two 25bps hikes in the previous month in an attempt to neutralise inflationary pressures due to exchange rate depreciation. Policymakers noted that annual inflation rose to 6.4 percent, its highest since December 2017, and it is expected to remain above the 3 percent target this year and to start declining from March 2020. The central bank added that monetary policy tightening will continue until the pressure on the exchange rate is eliminated.

2019-09-25
Georgia Hikes Key Rate for 2nd Time in September
The National Bank of Georgia raised its refinancing rate by 50bps to 7.5 percent at an extraordinary meeting on September 25th 2019, in an attempt to neutralise inflationary pressures as the result of the exchange rate depreciation. It follows a similar hike in the prior meeting in the beginning of the month. Policymakers added that monetary policy tightening will continue until the pressure on the exchange rate is eliminated and referred to the possibility of more extraordinary meetings if necessary.

2019-09-04
Georgia Hikes Interest Rate to 7%
The National Bank of Georgia raised its refinancing rate by 50bps to 7 percent on September 4th 2019, after inflation rate jumped to 4.9 percent, its highest since December of 2017. It is the first hike in interest rates this year and follows two cuts, in the January and in the March meeting. Policymakers added that inflation expectations are exacerbated by the depreciation of the nominal exchange rate and that monetary policy tightening will continue until the pressure weakens. The central bank expects inflation to remain above the 3 percent target this year and to start decline from March 2020.

2019-07-24
Georgia Holds Key Interest Rate at 6.5%
The National Bank of Georgia left its refinancing rate unchanged at 6.5 percent on July 24th 2019, saying inflation will stay above the target level this year and will start to decrease from March next year. In June, annual inflation rate fell to 4.3 percent from a 4.7 percent in May, in line with central bank estimates, however, if the pressure in inflation rate continues, the board will consider an interest rate cut.

2019-06-12
Georgia Holds Key Interest Rate at 6.5%
The National Bank of Georgia left its refinancing rate unchanged at 6.5 percent on June 12th 2019, saying inflation rate will start to decrease to the central bank’s target of 3 percent at the beginning of the next year. In May, annual inflation rate jumped to 4.7 percent from 4.1 percent in April, the highest since December of 2017, due to a one-time event caused by the increase in excise taxes.

2019-05-01
Georgia Holds Key Interest Rate at 6.5%
The National Bank of Georgia left its refinancing rate unchanged at 6.5 percent on May 1st 2019, after a 25bps cut in the March meeting. Policymakers kept borrowing costs at its lowest since December of 2016 mentioning a stable inflation rate around the target level of 3 percent. In March, annual inflation rate rose to a 14-month high of 3.7 percent from 2.3 percent in February. The central bank added that the normalization of monetary policy will be carried out gradually.


Georgia Interest Rate
In Georgia, interest rate decisions are taken by the National Bank of Georgia. The official interest rate is the 7-day refinancing rate.

Georgia Money Last Previous Highest Lowest Unit
Interest Rate 9.00 8.50 12.00 3.75 percent [+]
Money Supply M0 3230541.93 3289480.91 3332272.79 84708.06 GEL Thousands [+]
Deposit Interest Rate 9.63 8.60 20.26 3.00 percent [+]
Money Supply M1 7696571.36 7802089.29 7926829.16 107278.65 GEL Thousands [+]
Money Supply M2 11227810.98 11363340.29 11419132.88 112337.23 GEL Thousands [+]
Money Supply M3 24247543.34 24372605.68 24372605.68 131418.52 GEL Thousands [+]
Foreign Exchange Reserves 2093583.00 1864814.00 3219449.00 297495.00 GEL Thousands [+]