The National Bank of Georgia’s Monetary Policy Committee held the policy rate at 8.25%, maintaining a moderately tight stance to contain inflation expectations and second round effects. Annual inflation reached 5.6% in August, driven mainly by higher energy prices and growing pressure from international food markets, while core inflation of 3.6% and services inflation of 4.4% indicated that broader price pressures remained more moderate. The central forecast remains for average inflation of about 5.2% in 2026, followed by a gradual return to the 3% target over the medium term. Economic activity remains strong, with growth of 8% in July and an average of 7.9% in the first seven months of 2026. A prolonged geopolitical and supply shock that raises expectations and broadens inflation could require modest rate increases, while stronger productive capacity, an improved external position and currency appreciation could allow faster policy normalization. The next Monetary Policy Committee meeting is scheduled for Oct. 21, 2026.
2026-09-09National Bank of Georgia
National Bank of Georgia holds policy rate at 8.25% as supply shocks keep inflation above target
The National Bank of Georgia held its policy rate at 8.25% as annual inflation reached 5.6% in August, mainly because of energy and food price pressures. It expects average inflation of about 5.2% in 2026 and a gradual return to the 3% target, but could raise rates modestly if prolonged supply shocks lift expectations and intensify second round effects.