FX.co ★ National Bank of Georgia Holds Policy Rate at 8%

The National Bank of Georgia decided to maintain its principal interest rate at 8% during the meeting held in May 2025. Inflation levels in Georgia are currently aligned with the central bank's 3% objective, with the headline inflation rate recorded at 3.4% in April, while core inflation stands at 2.3%. Nonetheless, policymakers highlighted the emergence of inflationary risks in the wake of increased global economic uncertainties. Considering these global challenges, as well as domestic developments and market expectations, the central bank anticipates that inflation may temporarily exceed the target in 2025 but should stabilize at approximately 3% in the medium term. On the economic front, the country's performance remains strong, with an average real GDP growth of 9.3% registered in the first quarter. Consequently, the central bank has adjusted its 2025 GDP growth forecast upwards, from an initial 5% to 6.7%. In the long term, growth is expected to gradually align with its potential rate of 5%.