The National Bank of Georgia held the monetary policy rate at 8.25% on 29 July, the third consecutive decision at that level after 6 May and 17 June. Annual inflation eased to 5.5% in July from 5.8% in June, and stood at 5.7% in May — a narrow range that offered little reason to move.
The rate in force sits 2.75 percentage points above July inflation. On annual data, the real interest rate has narrowed steadily: 9.10% in 2023, 6.10% in 2024 and 4.00% in 2025, so policy has become less restrictive in real terms without any change in the nominal rate across the three decisions shown.
The Taylor Rule comparison points the other way. The implied rate is estimated at 9.52% for 2025, after 5.33% in 2024 and 1.15% in 2023, leaving the rate now in force more than a percentage point below the latest estimate. A swing of that size across three years argues for reading these estimates as a direction rather than as a level.
Figures in this post
Every number below was checked against the source before publication.
CPI_YOY_MAnnual inflation National Statistics Office of Georgia (Geostat)POLICY_RATE_DMonetary policy rate, per decision National Bank of GeorgiaREAL_INTEREST_RATE_AReal interest rate (policy rate less inflation) Computed from other indicators’ stored observationsTAYLOR_RULE_RATE_ATaylor Rule implied policy rate Computed from other indicators’ stored observations