National Bank of Ga said it kept it has the key interest rate unchanged at 7 p . c on Wednesday, based on forecasts showing twelve-monthly inflation exceeding it has the target of 4 p . c this year.
Consumer prices ended up up 7.One percent in annual words in June, 3.4 percent lower on the previous month.
“Mounting inflation, which is in accordance with a current forecast, will above the target this current year,” the central loan company said in a report.
“We expect of which inflation will start to fall in the second half of this year and will resume the target level throughout 2018.”
After cutting the key charge several times last year, a central bank higher it to 6.75 percent from 6.5 % in January, still left it unchanged throughout March, raised it to 7 p . c in May together with kept unchanged in June. The bank has its next insurance policy meeting on Sept 6.
The central bank’ersus expectations for mounting inflation reflect offer side pressures, amount rises for some items on overseas marketplaces and higher taxes, notably excise duties on smoking cigarettes, cars and oil products imposed via Jan.