The National Bank of Georgia (NBG) reduced its key policy rate by 25 basis points to 7.25% on October 26.

The rate, which was kept unchanged at 8% since February, was reduced by the central bank to 7.75% in July and then to 7.5 in August.

According to the state statistics agency, Geostat, year-on-year rate of inflation fell from 7.2% in August to 4.6% in September.

"The annual inflation rate dropped below the target level of the NBG in September and is expected to decrease further at the beginning of the next year," NBG's monetary policy committee said on October 26. “In recent months the bank credits to the economy has increased considerably, particularly the loans disbursed in the domestic currency. The growth in loans stimulated economic activity and as a consequence, increase in the growth rate of the economy was observed in the third quarter.”