Page 32 - GEORptSep18

8.2 Central Bank policy rate
Georgia’s central bank reduces policy rate
The National Bank Of Georgia (NBG) reduced its policy rate by 25 basis points to 7.0% on July 25, the bank said in a statement . The NBG noted that the reduction of the policy rate will continue but at a slower pace than previously envisaged as inflationary pressures have eased.
The inflation rate remained close to the target level of 3%, amounting to 2.2% in June. As a result of the rapid strengthening of the nominal effective exchange rate, inflationary pressure is reduced, the NBG said.
Meanwhile, economic activity increased significantly in the first half of 2018, with real growth reaching 6.1% in January-June according to preliminary data. This is higher than forecast, as a background of strong foreign demand was combined with an increase in money transfers and loans that promoted internal demand. As a result, the NBG has increased its economic growth forecast for 2018 to 5.5%, it said.
The NBG’s Monetary Policy Committee will hold its next meeting on September 5.
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
32 GEORGIA Country Report September 2018 www.intellinews.com