NOV. 4 (The Conway Bulletin) — Georgia’s Central Bank increased its key interest rate to 7.5%, its highest level since Sept. 2011, to try and dampen rising inflation.
In January, Georgian interest rates were 4%, demonstrating just how aggressively its Central Bank has pushed up the cost of borrowing.
In a statement, the Georgian Central Bank said that Consumer Price Inflation now measured 5.8%, pushed up by a rise in the cost of imported goods and a jump in electricity prices.
“According to the current forecast, in the beginning of 2016 the inflation will remain above its target value, will start decreasing afterwards and will return to its target value of 5% in the second half of 2016,” the Central Bank said in a statement.
This year, similarly to other currencies in the region, the Georgian lari has lost around 28% of its value.
ENDS
>>The story was first published on Nov. 6 2015 in the Conway Bulletin newspaper — a weekly magazine covering Central Asia and the South Caucasus.