National Bank of Georgia (NBG) increased refinancing rate from 7% to 7.5% in an attempt to curb inflation, which rose to 9.8% year-on-year in September.

NBG’s monetary policy committee said after its meeting on October 27, that the high inflation was “mainly” caused by external factors.

It said there was a need for strict monetary policy in order to put inflation within targeted figure of 6% in a mid-term period.

NBG increased key rate from 6.5% to 7% in September. The rate was kept unchanged at 5% since late November 2009 and increased to 6.25% in June and then to 6.5% in July.