The National Bank of Georgia has left the monetary policy rate unchanged

The National Bank of Georgia left the monetary policy rate unchanged at 8.25 percent at its October 21, 2026 meeting. The decision was made against the backdrop of global trends and the geopolitical tension in the Middle East, which caused a prolongation of supply-side shocks and an increase in inflationary pressure. Imedi+5

According to the National Bank's updated forecast, the 2026 inflation rate will be 5.4 percent. In September 2026, annual inflation was 5.6 percent, of which 2 percentage points came from energy prices. At the same time, core inflation is 3.5 percent, and service inflation is 3.7 percent. Imedi+5

Economic activity is stronger than expected, which is why the 2026 growth forecast was increased to 7.2 percent. In August 2026, economic growth was 6.3 percent. According to the National Bank, growth is driven by high-productivity sectors, which neutralizes inflationary pressure from the demand side. Imedi+5

The Monetary Policy Committee discussed high and low inflation risk scenarios. In the event that the high inflation scenario is realized, additional tightening of monetary policy may become necessary. Civil writes that the low inflation scenario assumes the sustainability of economic growth and the de-escalation of the conflict, which will help inflation approach the target rate more quickly. Imedi+4