National Bank of Georgia (NBG) reduced its main policy rate by 25 basis points to 6.25% on April 25.

Georgian’s inflation slipped to -2.2% year on year in March, which was a second consecutive month of annual deflation. NBG’s monetary policy committee said that inflation “will remain low during this year.”

“In the recent weeks the excess liquidity in the banking system has decreased, causing the increase in the interbank market interest rates, which under the current conditions might have an undesirable effect on the economy. Hence, it is reasonable to reduce the policy rate,” the central bank’s monetary policy committee said on April 25.