BoM decides to maintain policy rate at 11 percentEconomy
Ulaanbaatar /MONTSAME/ At its regular meeting on June 19, the Monetary Policy Committee made a decision to keep the policy rate unchanged at 11 percent.
The decision is consistent with the goal of keeping inflation at target level and maintaining macroeconomic and financial stability.
Vice President of the Bank of Mongolia B.Lkhagvasuren noted “Considering the macroeconomic situation, external uncertainty and domestic risks, the Monetary Policy Committee decided to keep policy rate unchanged. Given the external economic environment and domestic activity, inflation is still likely to bestable at the target level.”
As of May 2019, the annual inflation rate reached 7.9 percent. Inflation volatility is explained by the sharp change in the meat price due to the petroleum price volatility and global oil price fluctuations, while the basic demand-pull inflation is stable.
As the mining sector exceeded expectations in the first quarter of this year, the economy continues to grow with the increasing business loans, investment and budget expenditures, he noted.