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In September, the annual inflation rate stood at 6.4% y/y. Along with one-off factors, the overshooting of the target was caused by the increased pass-through from the nominal exchange rate depreciation to inflation in recent periods, the central bank explained.
According to its forecast, other things being equal, inflation will remain above the target during this year, will start to decline from March 2020 and stay close to the target (5% +/-1pp) in the medium term.
The Georgian lari’s nominal effective exchange rate remains undervalued, exerting upward pressure on inflation, the central bank stated.
This inflationary pressure is only partially offset by the aggregate demand-side factors as economic activity is stronger compared to previous periods.
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
41 GEORGIA Country Report November 2019 www.intellinews.com
