Bank of Mongolia Lowers Policy Interest Rate to 12 Percent

Ulaanbaatar, March 19, 2024. /MONTSAME/ The Bank of Mongolia has set the policy interest rate at 12 percent, lowering by 1 point. The Monetary Policy Committee of the Bank of Mongolia held its meeting on March 15, 2024, and made this monetary policy decision. Moreover, the Committee authorized commercial banks to restructure and extend the maturity date of loans issued to herders who face difficulties in repayment.   

“This arrangement is made for keeping to sustain inflation at the aimed level in the midterm and to ensure economic and financial stability. Monetary policy actions will be taken following the economic recovery, inflation trend, supply-related factors, and global changes,” said Governor of the Bank of Mongolia Lkhagvasuren Byadran.

“Inflation has declined as supply-driven price rise has stabilized, the exchange rate of the national currency against foreign currencies has strengthened compared to the previous year's level, growth in import products and transportation costs have slowed down, and the policy measures implemented over the last two years have yielded expected results,“ noted the Governor of Mongol Bank.

In its meeting in December 2023, the Monetary Policy Committee decided to keep the policy rate unchanged at 13 percent.