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

The National Bank of Georgia left its key policy rate unchanged at 8.0% at its March 2026 meeting, reflecting a cautious approach amid escalating tensions in the Middle East. Policymakers indicated that, prior to the recent flare-up in the conflict, inflation had been broadly in line with the NBG’s baseline scenario, which envisaged inflation returning to the 3% target from the second quarter of 2026 as temporary factors faded. Annual inflation eased to 4.6% in February, down from 4.8% in January. However, the recent surge in oil prices has already started to feed through to the Georgian market and is expected to push headline inflation higher in March. The central bank stressed that as long as inflationary shocks related to the geopolitical situation persist, or if their magnitude increases the risk of second-round effects, it stands ready to keep monetary policy tighter for longer than previously expected and, if needed, to implement additional tightening measures.