Governor of the National Bank of Georgia (NBG), Natia Turnava, participated in a high-level panel discussion titled “Financial Stability and the Rate Cut Cycle”, held during the Reykjavik International Economic Conference.

In her remarks, Turnava emphasized the significance of the NBG’s risk-oriented approach to monetary policy, which she described as key to achieving optimal outcomes. She underscored Georgia’s continued economic resilience and price stability amid global uncertainty.

“Against the backdrop of global geopolitical tensions and successive shocks, central banks have found themselves operating in an environment of heightened uncertainty. In response to these challenges, they have tightened monetary policy, which has contributed to reducing global inflation. However, today’s discussions clearly underscore that, alongside price stability, ensuring financial stability is equally important. Uncertainty remains high, and in such a context, effective risk management becomes all the more crucial.

In this regard, Georgia stands out as a notable example: thanks to the National Bank of Georgia’s timely monetary policy response, inflation has decreased and price stability has been maintained. For the past two years, inflation in Georgia has remained close to the target level, while in many other countries high inflation has continued to pose a challenge. Importantly, this success has been achieved in conjunction with macroprudential policies, which have helped preserve financial stability amid strong economic growth.

The policy implemented by the National Bank of Georgia has once again demonstrated that a forward-looking strategy—grounded in a risk-based approach and a scenario-oriented monetary policy framework—is one of the key prerequisites for success. In line with this logic, as of January 2025, the NBG has entered a new phase of monetary policy communication, based on principles of risk management and a scenario-based approach. Central banks and leading economists around the world confirm that transitioning to such a framework is essential amid ongoing global uncertainty. In this respect, the National Bank of Georgia has established itself as one of the global leaders, having already adopted these approaches,” stated Natia Turnava, Governor of the National Bank of Georgia.



The Reykjavik International Economic Conference is hosted annually by the Central Bank of Iceland in collaboration with the Center for International Macroeconomics at Northwestern University. This year’s event brought together central bank leaders from across the globe, including Andrew Bailey, Governor of the Bank of England; John Williams, President of the Federal Reserve Bank of New York; and top officials from the central banks of Iceland, Montenegro, Italy, China, Denmark, and several EU countries.