FX.co ★ National Bank of Georgia Holds Key Rate Unchanged

The National Bank of Georgia left its key policy rate unchanged at 8.25% at its September 2026 meeting, maintaining a moderately tight monetary stance in response to ongoing inflationary risks. Annual inflation accelerated to 5.6% in August, driven primarily by supply-side shocks—most notably higher energy prices amid renewed geopolitical tensions in the Middle East. International food prices also rose, while increased energy costs pushed up production and transportation expenses.

Despite these pressures, underlying price dynamics remain more contained: core inflation stood at 3.6% and services inflation at 4.4%, indicating that the supply shock has so far had a limited impact on inflation expectations. The NBG expects average annual inflation of around 5.2% in 2026, with inflation gradually converging toward its 3% target over the medium term.

The central bank noted that it may implement a moderate policy rate hike if extended supply shocks elevate inflation expectations and trigger second-round effects. Conversely, it signaled that policy normalization will begin once the current inflationary shock subsides.