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

The National Bank of Georgia left its policy rate unchanged at 8.0% at its February 2026 meeting, maintaining a moderately tight monetary stance in the face of persistent inflationary pressures. Annual inflation was 4.8% in January, driven mainly by higher food prices, while core inflation remained within the target range at 2.1% and services inflation inched up to 3%. The NBG noted a moderate increase in rigid price components, heightening risks to inflation expectations and prompting a slight upward revision of its 2026 inflation forecast. Even so, inflation is projected to move gradually towards the 3% target from the second quarter onward and to average 3.7% for the year. Economic growth is forecast at 5% in 2026, as activity returns to its long-term trend and credit growth stabilizes. The MPC underscored both upside risks—stemming from global commodity prices and geopolitical tensions—and downside risks, including a weaker dollar, lower oil prices, and domestic labor market developments, and reiterated that future policy decisions will remain data-dependent.