National Bank of Georgia (NBG) kept refinancing rate at 8% on June 22 for a fourth consecutive month.

Annual inflation accelerated to 14.3% in May.

NBG’s monetary policy committee said in a statement after meeting that inflation will go down to 8% by the end of year.

It said that annual core inflation, excluding food and fuel prices, “is still low” at 1.7% “Hence the demand-side inflation risks are low,” the central bank said.

“The real growth of the economy in the first quarter of 2011 has dropped compared to the previous quarters and is equal to 5.8%, indicating the reduction in the demand growth rates,” NBG’s monetary policy committee said.