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 2021-2023 is determined by the decree of the Parliament of Georgia on "the main directions of monetary and exchange rate policy of Georgia for the years 2021-2023", which stipulates that:
The inflation target for 2021-2023 is set at 3%.
To meet inflation target in the medium term, in 2021-2023 the National Bank of Georgia will rely mainly on monetary policy rate, to be transmitted to real economy through the following monetary policy instruments: refinancing loans, one-month open market operations, standing facilities, certificates of deposit, operations with government securities, foreign exchange interventions, minimum reserve requirements and other instruments.
Expected consumer price dynamics over 2021-2023 will be affected by following external risks: changes in international prices for oil and food, changes in geopolitical and other global risks, changes in administrated prices, imported inflation from main trading partner 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.