The monetary policy decision is dependant on the macroeconomic forecast, showing a sharp development of the inflation expectations in the Lari depreciation about the USD, which raises the future risks as a result of a one-time deviation in the inflation target.
In 2015 the NBG tightened the country’s monetary policy repeatedly in response to increased inflation expectations.
Monetary Committee of NBG adopted your choice, after a lot of time of debate on Wednesday, in the base of estimation of monetary environment and inflation expectations.
According to the new forecast from the bank, the inflation will exceed 5% early in 2016, while later it will likely be below 5%, though the rate should still remain throughout the frame of targeted index.
The Committee notes, that inflation rise in January (5,6%) is fixed from the weak joint demand and reduced prices on oil and food staff for the world market.
The central bank underlines afresh, that “external sector still continues to be the main obstacle. Hard economy incorporates a negative influence on the revenues gained from commodity and repair export”.
To remind, NBG started strengthening of monetary policy from February, 2015 as well as the rate was increased from 4% to 8% by the end of the season.
It need to be noted, that annual inflation rate totals to five,6% in January.