September 25, 2019 / 8:34 AM / a month ago

Georgia's c.bank hikes rate again to rein in prices amid Moscow standoff

TBILISI, Sept 25 (Reuters) - Georgia’s central bank raised its key refinancing rate to 7.50% from 7% on Wednesday - the second increase this month amid rising inflation and a political standoff with Russia.

Annual inflation in August stood at 4.9%, up from 4.6% in July. Anti-Russian protests in the ex-Soviet republic earlier this year prompted Moscow to suspended flights to the country, hitting Tbilisi’s revenues from Russian tourists.

Georgia’s central bank raised its key rate on Sept 4 to 7.00% from 6.50%. The central bank’s governor told Reuters last week that it plans to further tighten monetary policy if inflation caused by the fall of its currency persists.

Reporting by Margarita Antidze; editing by Katya Golubkova and Andrew Heavens

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