The National Bank of Georgia maintained its policy rate at 8% during its December 2025 meeting, reflecting a measured approach amid lingering inflation pressures. Inflation slowed to 4.8% year-on-year in November, while core and service sector inflation remained near target at 2.3% and 2.6%, respectively. Rising food prices continue to influence headline inflation, though these effects are expected to be temporary. The NBG forecasts that inflation will average around 4% this year and gradually ease toward 3.5% in 2026. Economic activity is steadily returning to its long-term potential, helping to ease demand-side price pressures. Considering both upside risks from global commodity prices and geopolitical tensions and downside risks from a softer USD, falling international food prices, and domestic labor market developments, the Monetary Policy Committee deemed it appropriate to maintain a moderately tight monetary policy stance.
