{"id":78717,"date":"2015-09-24T06:53:09","date_gmt":"2015-09-24T10:53:09","guid":{"rendered":"http:\/\/countingpips.com\/?p=78717"},"modified":"2015-09-24T07:31:48","modified_gmt":"2015-09-24T11:31:48","slug":"georgia-raises-rate-100-bps-inflation-expectations-rising","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/09\/georgia-raises-rate-100-bps-inflation-expectations-rising\/","title":{"rendered":"Georgia raises rate 100 bps, inflation expectations rising"},"content":{"rendered":"<div id=\"inves-136395613\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 24, 2015<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/www.centralbanknews.info\/\"><u>CentralBankNews.info<\/u><\/a><br \/>\n&nbsp; &nbsp; Georgia&#8217;s central bank raised its benchmark refinancing rate by a further 100 basis points to 7.0 percent due to rising inflation expectations stemming from currency depreciation and warned that it would &#8220;use all the tools at its disposal&#8221; to avoid that a rise in inflationary expectations do not turn into higher inflation rates.<br \/>&nbsp; &nbsp; The National Bank of Georgia (NBG), which has now raised its rate by 300 basis points this year, added in a statement from September 23 that further changes would depend on inflation, economic growth and the global and regional economic environment, a change in tone from last month when it said it expected to raise the rate further this year as it continued to normalize its policy stance.<br \/>&nbsp; &nbsp; Georgia&#8217;s inflation rate rose to 5.4 percent in August from 4.9 percent in July and is currently forecast to temporarily deviate from the bank&#8217;s 5.0 percent target until the end of 2016.<br \/>&nbsp; &nbsp; The central bank said exchange rate depreciation is still determining the inflation rate due to rising costs of production of intermediate and some imported goods, while a one-off increase in electricity tariffs also had a significant impact on inflation. Meanwhile, weak demand and lower oil prices are helping restrain food prices, the NBG said.<br \/>&nbsp; &nbsp; Georgia&#8217;s lari started depreciating sharply against the U.S. dollar in late November 2014, and after a rebound in May and June, it again started falling in July. In response to the central bank&#8217;s decision, the lari firmed to be trading at 3.8 to the dollar today for a depreciation of over 50 percent this year.<\/p>\n<p>&nbsp; &nbsp; <a href=\"http:\/\/www.centralbanknews.info\/\">www.CentralBankNews.info<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By CentralBankNews.info &nbsp; &nbsp; Georgia&#8217;s central bank raised its benchmark refinancing rate by a further 100 basis points to 7.0 percent due to rising inflation expectations stemming from currency depreciation and warned that it would &#8220;use all the tools at its disposal&#8221; to avoid that a rise in inflationary expectations do not turn into higher [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-78717","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=78717"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78717\/revisions"}],"predecessor-version":[{"id":78718,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/78717\/revisions\/78718"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=78717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=78717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=78717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}