According to her, the processes taking place in international markets are also being transmitted to the Georgian economy, and annual inflation in August amounted to 5.6%. The deviation from the 3% inflation target is mainly due to supply-side shocks, including the increase in energy prices."It is important that the supply shock does not increase inflationary expectations. In this regard, one of the important indicators - core inflation - was 3.6% as of August, which indicates that this impact still remains moderate," - noted Tamta Sopromadze.According to the National Bank, the current dynamics of inflation are in line with the central forecast. According to the current scenario, in 2026 the average annual inflation will be within 5.2%, and in the medium term inflation will gradually return to the 3% target.At the same time, economic activity remains at a high level. According to preliminary data, economic growth in July 2026 amounted to 8%, and in the first seven months of the year it averaged 7.9%."The Monetary Policy Committee considered it appropriate to maintain a moderately tight monetary policy, the goal of which is to quickly return inflation to the 3% target after the impact of external factors has subsided," Tamta Sopromadze noted.According to the National Bank, the regulator will actively continue to monitor current events and the intensity of their transmission to the local economy. In the event of increased pressure on inflationary expectations as a result of a prolonged supply shock, a moderate increase in the monetary policy rate may continue, and after the inflationary shock has subsided, the NBG will gradually begin to normalize the policy.The National Bank of Georgia decided to keep the monetary policy rate unchanged at 8.25% at the September 9 meeting of the Monetary Policy Committee.The next meeting of the Monetary Policy Committee is scheduled for October 21, 2026.

1788955165

According to NBG, in August 2026, headline inflation in Georgia stood at 5.6 percent. The deviation of inflation from the target continues to be driven largely by supply-side shocks, with rising energy prices making a significant contribution. Renewed geopolitical tensions in the Middle East have increased uncertainty surrounding energy supplies and heightened volatility in international prices. At the same time, inflationary pressures stemming from international food markets have intensified. In addition to their direct impact on consumer prices, higher energy prices increase production and transportation costs and, through this channel, affect the prices of other goods and services. Accordingly, assessing inflation dynamics requires consideration of both the persistence of the supply shock and the extent to which it is transmitted to other components of inflation and becomes embedded in inflation expectations. In this regard, developments in the relatively sticky components of inflation warrant particular attention. Relatively sticky inflation indicators remain below headline inflation. In August, core inflation stood at 3.6 percent, while services inflation was 4.4 percent. These developments suggest that, despite the supply shock, its impact on inflation expectations remains moderate.However, a prolonged shock increases the risk of its transmission to inflation expectations, making second-round effects an important factor to monitor. According to the NBG’s assessment, recent inflation dynamics remain broadly in line with the central forecast. Under the central scenario, other things being equal, average annual inflation is projected at around 5.2 percent in 2026, before gradually converging to the 3 percent target over the medium term.Economic activity remains strong. According to preliminary data, economic growth stood at 8.0 percent in July 2026 and averaged 7.9 percent over the first seven months of the year. High-productivity sectors continue to make a significant contribution to economic growth, partly offsetting inflationary pressures stemming from strong aggregate demand.Uncertainty surrounding the evolution of geopolitical tensions and the extent of their impact on the economy remains high. Accordingly, alongside the central scenario, the MPC considered both high- and low-inflation risk scenarios.In the event of the realization of the high-inflation risk scenario, fundamental processes require a higher trajectory of the monetary policy rate than the central scenario. This scenario assumes that a prolonged period of heightened geopolitical tensions than in the central scenario, coupled with an increase in international food prices due to adverse climate conditions, would affect inflation expectations and amplify second-round effects. As a result, inflation would be higher and more broad-based than under the central scenario, requiring a tighter monetary policy stance.On the other hand, under the low-inflation risk scenario considered by the MPC, the realization of the risks would allow a faster normalization of monetary policy rate compared to the central scenario. Structural changes in the economy in recent years have increased the contribution of relatively high-productivity and less import-intensive sectors, which, on the one hand, enhances the economy’s productive capacity and, on the other, improves the country’s external position. If these structural shifts persist over the medium term, stronger productive capacity would moderate demand-driven inflationary pressures. At the same time, the improved external position, together with a lower sovereign risk premium, would support a stronger fundamental exchange rate, providing an additional disinflationary effects. As a result, headline inflation would converge to the target faster than under the central scenario.Taking into account the current macroeconomic environment and prevailing risks, the MPC decided to keep the monetary policy rate unchanged. The moderately tight monetary policy stance aims to minimize risks related to inflation expectations and second-round effects, ensuring that inflation returns rapidly to the 3% target once the supply shock dissipates. The NBG continues to closely monitor the current developments and the intensity of their transmission to the domestic economy. Should prolonged supply-side shocks lead to an upward trend in inflation expectations, which would amplify second-round effects, the MPC will continue to increase the monetary policy rate moderately. Once the inflationary shock dissipates, the NBG will gradually begin to normalize its monetary policy stance.The next meeting of the Monetary Policy Committee will be held on October 21, 2026.

1788954671

Lion Finance Group (BGEO LN) shares closed at GBP 136.20/share (+1.49% w/w and +13.50% m/m). More than 169k shares traded in the range of GBP 131.90 - 136.90/share. Average daily traded volume was 51k in the last 4 weeks. The volume of BGEO shares traded was at 0.39% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 51.00/share (+0.99% w/w and +2.57% m/m). More than 220k shares changed hands in the range of GBP 49.00 - 51.60/share. Average daily traded volume was 47k in the last 4 weeks. The volume of TBCG shares traded was at 0.40% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 44.20/share (+0.45% w/w and -1.78% m/m). More than 341k shares traded in the range of GBP 42.30 - 44.65/share. Average daily traded volume was 48k in the last 4 weeks. The volume of CGEO shares traded was at 0.99% of its capitalization.

1788866880

As of August, Georgia's total international reserves reached a new record level of $8.14 billion, which is $613 million more than in the previous month, and the annual growth is 56.4%. Reserve adequacy indicators have improved significantly - in particular, foreign exchange reserves currently exceed the 100% threshold defined by the International Monetary Fund methodology and remain at 128.2%.According to Ekaterine Mikabadze, during the first seven months of 2026, the National Bank purchased more than $2.5 billion in foreign exchange on the foreign exchange market."It is very important that the long-term policy of the NBG is aimed at accumulating reserves and effectively managing reserve assets. Therefore, when the macroeconomic situation and the foreign exchange market allow it, the NBG actively accumulates reserves," Mikabadze noted.The First Vice President of the NBG emphasized the strategic decision of the NBG and the diversification of international reserves into gold."The NBG's strategic decision to diversify its reserves into gold is quite positive. As a result of the significant increase in the price of gold, the value of monetary gold in the reserves has practically doubled and, as of August, amounts to 1 billion 149 million US dollars. Meanwhile, the share of gold in total international reserves is 14.1%," said the Vice President of the National Bank.

1788866781

The central bank reported a USD 613 million month-on-month surge in international reserves, accompanied by improvements across reserve adequacy metrics.“The current level of foreign exchange reserves surpasses the 100 per cent threshold defined by the International Monetary Fund’s ARA metric, standing at 128.2 per cent.International reserves serve as a vital guarantor of the country’s macroeconomic stability.Accordingly, the long-term policy of the National Bank of Georgia remains focused on reserve accumulation and the efficient management of reserve assets. Whenever foreign exchange market dynamics and macroeconomic conditions permit, the central bank replenishes its reserves.As a result of the NBG’s policy, reserve volumes have doubled over the past two years compared to October 2024. Throughout 2026, favourable market conditions enabled net foreign currency purchases totalling USD 2,566.6 million between January and July. Net purchase statistics for August 2026 will be published on 25 September.Notably, in 2024, the NBG took a strategic decision to diversify its reserve holdings by making its inaugural investment in gold. Subsequent appreciation in gold prices has contributed to further growth in gross international reserves. In June 2026, the NBG acquired an additional USD 100 million in monetary gold. Driven by market price movements, the total value of monetary gold reserves grew by USD 135 million month-on-month to reach USD 1,149.2 million as of August 2026, accounting for 14.1 per cent of gross international reserves.The National Bank of Georgia will release updated international reserve figures on 7 October 2026,” the National Bank’s statement read.

1788781040

It is noteworthy that citizen applications to the Commission have increased significantly in recent times, driven by legislative amendments. According to these changes, the maximum threshold value of a dispute subject within which the Commission is authorized to review consumer complaints was raised from GEL 50,000 to GEL 100,000. Complaints submitted by consumers primarily relate to payment transactions executed from accounts that consumers dispute.Furthermore, in accordance with the favorable decisions issued by the Commission, the total volume of funds actually reimbursed/credited to consumers stands at GEL 426 thousand.At present, the total value of ongoing disputes is GEL 400 thousand, while the remaining amount to be reimbursed by providers to consumers pursuant to the Commission's decisions totals GEL 393 thousand.In total, the aggregate amount claimed across all complaints received throughout the entire period of the Commission's operation amounts to GEL 1 million 645 thousand.The Dispute Resolution Commission under the National Bank of Georgia provides consumers with a fast, efficient, and free mechanism for dispute resolution. The goal of the Commission is to protect the rights of payment service consumers, ensure their fair treatment, and strengthen consumer trust in digital payments.The Commission operates as an independent body, and its establishment stems from the commitments undertaken by Georgia under the Association Agreement between Georgia and the European Union.Consumers are entitled to submit a complaint to the Dispute Resolution Commission operating under the National Bank of Georgia if they believe there has been an unauthorized transaction (executed without their consent) via payment card, internet banking, mobile banking, or other channels, a violation of the payment transaction execution deadline, an incorrectly executed transaction, an erroneous transaction fee debit, or other similar cases.

1788517362

According to the NBG's interactive statistics, the annual growth of total lending is 14.7%Y.Y. Consumer loans have increased by 20.74% annually. In GEL +21.7%Y.Y, in foreign currency +10.3%.The share of consumer loans in the total portfolio of banks is still growing. According to the NBG's financial sector review, it is 21.8% (L/Y – 19.2%) out of GEL 16.473 billion, only GEL 1.243 billion is equivalent in foreign currency.

1788436209

According to the NBG, additional protective mechanisms apply in cases where a tax service provider (including a commercial bank, micro-bank, registered tax service provider and microfinance organisation) simultaneously reveals four circumstances: Payment transaction is associated with high-risk fraud activity; An unusual pattern of consumer spending and behavior is identified; The amount of the payment operation exceeds 500 GEL; The age of the customer is above 60. “In all the cases listed above, the payment service provider is required to suspend the execution of the electronic payment transaction initiated by the user for 48 hours, contact the user, and provide appropriate information regarding risks or potential fraud in a simple and understandable manner.The customer will have 48 hours to make the final decision. If the customer decides to continue the operation, he/she should confirm to the service provider.The amendment complies with the best international practice. A similar approach, namely, a mechanism for suspending high-risk transactions of a certain volume, is in place in countries such as the U.S., Canada, Brazil, the United Kingdom and EU member states,” the NBG said.

1788261420

According to the National Bank of Georgia, the GEL portfolio is 44 million, and the foreign currency equivalent is 31 million. The retail portfolio of banks has increased by 17.3% annually, including up to 20% in GEL, and +7% in foreign currency Y.Y.The volume of lending to the resident household sector is 40.63 billion GEL.As of 7m/2026, the larization ratio of total loans is 58.7% (7m/2025 - 58.06%).

1788177420

Lion Finance Group (BGEO LN) shares closed at GBP 134.20/share (+2.52% w/w and +17.31% m/m). More than 216k shares traded in the range of GBP 130.50 - 135.60/share. Average daily traded volume was 51k in the last 4 weeks. The volume of BGEO shares traded was at 0.50% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 50.50/share (+5.87% w/w and +6.18% m/m). More than 265k shares changed hands in the range of GBP 47.70 - 51.35/share. Average daily traded volume was 55k in the last 4 weeks. The volume of TBCG shares traded was at 0.48% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 44.00/share (+0.46% w/w and +10.00% m/m). More than 207k shares traded in the range of GBP 43.75 - 45.30/share. Average daily traded volume was 42k in the last 4 weeks. The volume of CGEO shares traded was at 0.60% of its capitalization. 

1788177300