What We Do
Price stability and efficient monetary policy are the ultimate objectives of the National Bank of Georgia. It uses inflation forecasts and general macroeconomic model of the Georgian economy of own design to achieve these goals.
The strategy of the National Bank for 2023-2025 is determined by the decree of the Parliament of Georgia on "the main directions of monetary and exchange rate policy for the years 2023-2025", which stipulates that:
The inflation target for 2023-2025 is set at 3%.
To meet inflation target in the medium term, in 2023-2025 the National Bank of Georgia will rely on monetary policy rate, which will be transmitted to real economy through following monetary policy instruments: refinancing loans, one month open market operations, standing facilities, certificates of deposits, operations with government securities, foreign exchange interventions, minimum reserve requirements and other instruments.
Over 2023-2025, the expected consumer price dynamics will mainly be affected by following external risks: changes in international prices on oil, raw materials and food, changes in geopolitical risks, changes in administrated prices, faster-than-expected tightening of monetary policy by the central banks of the developing countries, etc. The National Bank of Georgia will not react to the temporary deviation from the inflation target caused by exogenous factors, except for the cases when deviation will have an impact on fundamental factors influencing inflation.
Ensuring financial stability is another important objective of the National Bank of Georgia. It implies the identification and mitigation of risks faced by the entire financial system. The National Bank of Georgia ensures the stability and transparency of the financial system and promotes sustainable economic growth while maintaining the price stability.