The National Bank of Georgia left its refinancing rate unchanged at 6.5 percent on May 1st 2019, after a 25bps cut in the March meeting. Policymakers kept borrowing costs at its lowest since December of 2016 mentioning a stable inflation rate around the target level of 3 percent. In March, annual inflation rate rose to a 14-month high of 3.7 percent from 2.3 percent in February. The central bank added that the normalization of monetary policy will be carried out gradually. Interest Rate in Georgia averaged 6.55 percent from 2008 until 2019, reaching an all time high of 12 percent in April of 2008 and a record low of 3.75 percent in August of 2013.
Interest Rate in Georgia is expected to be 6.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Georgia to stand at 5.75 in 12 months time. In the long-term, the Georgia Interest Rate is projected to trend around 5.50 percent in 2020, according to our econometric models.