Georgia Interest Rate

The National Bank of Georgia kept its key interest rate at 8% in December 2024, maintaining borrowing costs at their lowest level since 2021. This marks the fifth consecutive meeting with rates unchanged, following a 25bps cut in May. The decision reflects controlled inflation, with November’s rate at 1.8%, below the central bank’s 3% target, driven by effective monetary policies that have anchored long-term inflation expectations. Despite strong domestic economic activity, averaging 10% growth in the first ten months of the year, increased production capacity has limited price pressures. However, the economic outlook remains uncertain due to geopolitical risks and rising transportation and raw material costs, which threaten imported inflation. The National Bank emphasized a cautious approach to policy normalization and reaffirmed its commitment to using all available tools to maintain price stability.