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16th of January 2018

Mongolia



BoM lowers its monetary policy rate to 11 percent

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The American Chamber of Commerce in Mongolia

2017-12-25 14:30 GMT+8

During the December 22 meeting of the Monetary Policy Committee of the Bank of Mongolia (BoM), it was announced that the central bank's monetary policy rate would be at 11 percent.

BoM officials stated that inflation, which is determined by the commodity price index (6.5 percent nationwide and 7.6 percent in Ulaanbaatar as of November 2017), is stable at an expected eight percent.

Economic growth saw an increase in the third quarter of 2017, with mining production, construction, foreign trade, and foreign debt repayment pressure all seeing positive changes. According to the BoM, business loans, support for non-mining sectors, and unemployment all still need to be addressed with measures, including a decreased monetary policy rate.

The monetary policy rate was lowered by two points last June and set at 12 percent.

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