Policy interest rate cut by one percent
Monetary policy council of the Bank of Mongolia made a decision to cut the policy rate by one percent and it is set at 10 percent.
The council also renewed the required reserves at 10.5 percent and foreign currency reserves at 12 percent, respectively. The inflation rate expressed in terms of consumer price index reached 6.9 percent at national level and 8.1 percent in Ulaanbaatar last month. The inflation rate will be likely to gradually see an increase as the economy has been recovering. But it is estimated that the inflation rate will stabilize close to the target level.
Hence, it is stated that the decision to decrease policy rate has been made. Bank of Mongolia viewed that the policy rate decrease will have impact on reducing banking sector’s short-term loan interests and supporting business activities.
