The key refinancing rate will remain unchanged at 9%, the National Bank of Georgia (NBG).

The NBG said that along with the monetary policy tightening, nominal effective exchange rate slightly appreciated, reducing inflationary pressures; it, however, added that despite this appreciation, “the GEL nominal effective exchange rate remains undervalued”.

The central bank forecasts that other things equal the inflation will start declining from the beginning of 2020 and approach the target by the end of the year. This will be ensured by the monetary policy that will remain tightened until the medium-term inflation expectations are reduced to target 3%.

The NBG will continue to monitor the developments in the economy and financial markets and will use all means and instruments at its disposal to ensure price stability. The next meeting of the Monetary Policy Committee will be held on March 18, 2020.