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and healthcare arm that is listed separately on the London Stock Exchange, reported mixed financial results in the third quarter resulting from subdued margins in the healthcare segment and increasing profitability in the pharmaceutical business.
According to analysts from VTB Capital, GHG's growth driver in the short term will be two new referral hospitals in Tbilisi that will be inaugurated before the end of the year.
8.2 Central Bank policy rate
Georgia’s central bank keeps key rate unchanged at 7% citing inflationary pressures
The central bank of Georgia kept its key interest rate unchanged at 7% at a meeting on October 15 after observing trends that suggest inflation will exceed the government's target of 4%, the regulator announced in a press release.
In recent years, maintaining a stable exchange rate for the lari has been a struggle for the central bank. The currency began to depreciate steeply in late 2014, losing almost 40% of its value against the dollar within a year. Since then, the lari has been through periods of both appreciation and steep depreciation. The evolution of consumer price inflation has followed that of the national currency; inflation has consistently remained above the regulator's target of 5% per annum since 2015.
In response, the central bank cut its rate several times in 2016, raising it by 25 basis points to 6.75% in January and up to 7% in May. Due to higher taxes, particularly on tobacco, vehicles and oil products, introduced earlier this year, and higher prices for some goods on foreign markets, the regulator expects inflation to remain above its target this year.
According to national statistics agency Geostat, annual consumer price inflation stood at 6.2% in September.
30 GEORGIA Country Report December 2017 www.intellinews.com