FX.co ★ Georgia Keeps Key Rate Unchanged for 8th Time

The National Bank of Georgia has decided to maintain its key interest rate at 8% during its June 2025 policy meeting, marking the eighth consecutive period at this level. Inflation hovers near the central bank's target of 3%, with May 2025 figures showing headline inflation at 3.5% and core inflation at 2.1%. Although inflation is anticipated to temporarily surpass the target—forecasted to average 3.8% for the year—it is expected to stabilize around 3% in the medium term. On the economic front, activity remains robust, with initial data indicating the Georgian economy grew by an average of 8.8% during the first four months of 2025. This vigorous growth is anticipated to gradually align with its long-term trend. Given these factors, the Monetary Policy Committee has opted to maintain a cautious approach towards the ongoing normalization of monetary policy. Future interest rate decisions will rely on updated macroeconomic forecasts and an assessment of both domestic and international risks.