The National Bank of Georgia reduced its refinancing rate by 25 basis points to 4.5% as annual inflation remains well below the target.

Inflation dipped by 2.1% on an annual basis in February after 1.6% deflation in January.

The central bank said on March 27, that annual inflation would remain below the target of 6% at least till second half of next year.

It also said that “credit activity still remains weak in the country due to the low demand for loans.”