Georgian violence prompts rate cut

The National Bank of Georgia has cut rates to combat the economic impact of the country's conflict with Russia.

The central bank said Wednesday that it had lowered its key policy rate, the one-week Certificate of Deposit rate, by 100 basis points to 11%.

"Some loosening is needed due to an increase in demand for liquid resources and the possible slowdown in economic activity that has resulted from the recent military operations within the nation," the central bank said. "The worsening investm