Policy interest rate kept at 13%

      On September 15, the Mongol Financial institution knowledgeable to maintain the coverage rate of interest at 13 % contemplating the present state of the financial system, banking and monetary markets, the outlook, and dangers of the exterior atmosphere. Inflation in buying and selling companion international locations decreased, commerce turnover improved, transportation prices decreased, and the change price in opposition to foreign exchange has been steady, which has diminished the worth of imported items and thus, inflation. Sooner or later, inflation will proceed to lower slowly. Nonetheless, as a result of of financial exercise, finances spending, elevated salaries, pensions, and advantages of presidency staff, demand-driven inflation will enhance from the earlier forecast. Financial development was larger than anticipated in Q2 2023, primarily on account of elevated exercise in mining and associated industries, as coal exports rose to file highs. As well as, the weakening of the fiscal outlook is a situation for rising financial development expectations.

The restoration of the economic sector of China, the primary commerce companion of Mongolia, can be slower than anticipated, and the outlook for overseas demand and costs of main uncooked supplies will deteriorate additional. As well as, the escalation of geopolitical conflicts and excessive climate occasions occurring around the globe might have a detrimental influence on the exterior financial scenario. Contemplating the excessive degree of exterior and inside uncertainty and the sluggish tempo of inflation to the goal degree, the Financial Coverage Committee of the Mongol Financial institution has determined to keep up the coverage price at 13 %. This resolution is in step with the purpose of stabilizing inflation across the goal degree in the medium time period and making certain macroeconomic stability.

Sooner or later, the following coverage steps can be taken relying on how the inflation scenario will change within the exterior and inside financial atmosphere.