Monetary Policy Committee formulates monetary and exchange rate policies and implements necessary actions to conduct it. The decision of the Committee is submitted as a recommendation to the Governor of the National Bank for a final decision. The Committee consists of 14 members: the Governor of the National Bank, three Vice-Governors, and heads of relevant departments and divisions.

 

The Monetary Policy Committee meets twice a quarter according to a pre-announced schedule (in exceptional cases, MPC may also hold an extraordinary meeting) and makes decisions on the monetary policy rate. Furthermore, the MPC makes decisions on the monetary and exchange rate policy that are defined by the Organic Law on the National Bank of Georgia. These include open market operations and other monetary and foreign exchange operations, the issuance and circulation of own securities, calculation of and adherence to the rules of minimum reserve requirements. Other functions of the Committee are: setting interest rates on loans, deposits and other monetary operations of the National Bank (except for lending of last resort), setting minimum reserve requirements, and using monetary and foreign exchange policy instruments.

 

MPC’s monetary policy decision and underlying reasons are published on the website of the National Bank of Georgia after the end of a monetary policy committee meeting.

 

The National Bank of Georgia annually submits the document about the "Main Directions of Monetary and Exchange Rate Policies” developed by the Monetary Policy Committee to the Parliament of Georgia.This document includes the inflation target rate for the following three years and outlines possible measures to achieve that target.