FX.co ★ National Bank of Georgia Holds Key Rate at 8%

The National Bank of Georgia opted to keep its policy rate steady at 8% during the December 2025 meeting, adopting a cautious approach in light of ongoing inflationary pressures. In November, inflation slowed to an annual rate of 4.8%, with core and service sector inflation aligning closely with targets at 2.3% and 2.6%, respectively. Although rising food prices continue to affect overall inflation figures, these are anticipated to be temporary effects. The NBG projects that inflation will average approximately 4% this year, gradually easing towards 3.5% by 2026. As economic activity steadily rebounds to its long-term potential, it helps alleviate demand-side pressures on prices. Weighing the potential risks, including the upward pressure from global commodity prices and geopolitical issues, against the downward risks posed by a weaker US dollar, declining international food prices, and changes in the domestic labor market, the Monetary Policy Committee considered it prudent to maintain a moderately restrictive monetary policy stance.