The Monetary Policy Committee of the National Bank of Georgia lifted the refinancing rate by 25 bp to 8.25 % on 6 May 2026, judging that the Middle East conflict, costlier global energy and shipping bottlenecks through the Strait of Hormuz have generated a fresh supply-side shock that pushed headline inflation to 5.9 % in April, well above the 3 % goal, while core and services inflation quickened to 3.2 % and 3.7 %. After keeping the rate at 8.0 % since January 2025, this first increase seeks to pre-empt second-round effects and reinforce well-anchored expectations. Domestic conditions remain strong: GDP expanded by 10.7 % y/y in March and 9.1 % in Q1, with high-productivity sectors cushioning demand-driven price pressures. The central bank highlighted heightened external inflation risks from elevated commodity prices and potential supply-chain strains, and said it stands ready to tighten further if shocks prove more persistent, while committing to begin a gradual policy normalization once inflation is on track to return to target.
National Bank of Georgia 2026-05-06
National Bank of Georgia lifts refinancing rate by 25 bp to 8.25 % on 6 May 2026
National Bank of Georgia’s Monetary Policy Committee raised the refinancing rate 25 bp to 8.25 %—its first increase since January 2025—citing a Middle East-related supply shock that pushed April headline inflation to 5.9 % versus the 3 % target. The bank warned of further tightening if external price pressures endure but will shift to gradual normalisation once inflation is on a clear path back to target.