Key interest rate of Mongolbank reduced by 1 percent

2016-12-20 13:24:24

Ulaanbaatar /MONTSAME/ At its meeting on Monday, the Central bank's Monetary Policy Council decided to cut its official interest rate from 15% to 14%, stated Mongolbank President N.Bayartsaikhan at a press conference.

He noted that the decision was taken with a view to encourage private investments and other real sectors. He explained that the previous increase in key interest rate in August, 2016 played an important role in taking preventive measures against deepening of currency rate instability, protecting foreign currency reserves and attaining financial stability. “We expect that inflation would be below the targeted level in 2017, and its projected that inflationary pressure also would be low.

Improvement of Mongolian foreign trade conditions is expected to have a positive impact on the inflow of foreign currency, on the balance of payments and on the budget revenues. After the implementation of Medium-term budget framework (MTBF) and the law “On state budget of Mongolia for 2017” budgetary discipline is to be improved which will concucive to ensuring medium-and long-term debt sustainability,” he added.