Georgia central bank raises policy rate despite recession

The National Bank of Georgia raised its policy rate by 50 basis points on March 17, citing rising inflation, despite the country’s severe economic contraction.

The move brings the main interest rate to 8.5%. It comes as Georgia struggles with both rising inflation and high unemployment, along with months of political unrest after a contested election.

The central bank’s monetary policy committee cited high annual inflation in its press release explaining the decision. The official year-on-year