The National Bank of Georgia's Monetary Politics Committee took a decision on August 17 about the decreasing of the monetary politics rate for 25 basis points. The rate of the monetary politics amounted for the 7.5 %.
In July of 2011 the consumption prices index, to compare with the previous month decreased for 1.5 %. The yearly inflation reached 8.5%. This figure includes high indication for the food prices 6.7%. The basic inflation indicator continues to diminish: in July excluding the food and energy resources the basis inflation equaled to 0.03 %. As well the services inflation is low and equals to 1.2%.
For the last months the inflation indicator diminishing with the speed faster than expected. The prognoses are for the further inlation decrease. It is expected that the inflaiton this year will fail and will keep the low level in the next year as well.
With this respect the National Bank continues to soften the monetary policy which started last month to keep the inflation rate in the intermediate period on the purposeful level.
For the last period the risks with the slow down of USA economic growth are expected, as well the unclear is Euro zone economic growth. The further slowing of the economic growth will invoke falling of prices at the international commodity market. But on the other side this will cause the decrease the demand for Georgian goods. In such case the National Bank has to take additional actions. The National Bank of Georgia will continue to watch closely the processes at world financial markets and will take an appropriate decision.
The next one sitting of the Monetary Politics Committee will be held in 2011 September 14.
