Page 33 - GEORptMay19.pdf

The regulator cut the rate to 6.75% in January and 6.50% in March.
The central bank said that the increase in annual inflation in March was a one-off caused by the hiking of excise taxes on tobacco—which contributed 1.3 percentage points to inflation.
“According to current forecasts, with other things being equal, inflation will move to the 3% target level after the expiration of this single (exogenous) factor,” it added in a statement.
The central bank plans to ease interest rates towards 5%-6% over the next two years, central bank governor Koba Gvenetadze told Reuters in January. “[T]aking into consideration risks from the foreign sector, it is expected that the normalisation of policy will be carried out gradually,” the central bank commented on May 1.
8.3 Stock market
Georgian central bank announces new regulations as part of capital market reform
The National Bank of Georgia said on July 18 that it has drawn up two new regulations governing brokerage companies.
The aim of the regulations — the Rule of Licensing and Regulation of Brokerage Company and the Additional Rule of Regulation of Brokerage Companies Involved in High-Risk Financing Instruments — is to raise standards of service in the sector, and to protect investors’ interests and allow them to make well-informed decisions. They were drawn up as part of ongoing capital market reforms.
“It is noteworthy that the established requirements fully address the challenges in the sector and also reflect the principles of the EU Directives, International Organisation for Securities Commissions (IOSCO) and European Securities and Markets Commission (ESMA) regulations,” the NBG said in a July 18 statement .
The rules are mandatory for all licensed brokerage companies, but due to their complexity active brokerage companies have been given a transition period during which they have to bring their work into compliance with the legislation.
33 GEORGIA Country Report May 2019 www.intellinews.com