Sep 7, 2019

The NBG to tighten further unless the GEL strengthens

Quick Update

  • NBG moves more decisively as inflation picks up further;
  • Inflation to reach around 7% unless the GEL strengthens;
  • The USD has strengthened internationally, explaining only a fraction of the GEL weakness;
  • The GEL also supported by the higher interest rate differential;
  • Stronger GEL/USD will counteract negative impact of the tighter policy stance on the domestic demand;
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