Mongolia Keeps Rate Unchanged At 13%

Mongolia's central bank kept its benchmark interest rate at 13%, pausing rate hikes after 4 consecutive increases, with the goal of stabilizing inflation around the target level and promoting macroeconomic and financial stability.

Indeed, the annual inflation rate reached 8.6% in November 2023, the lowest reading since July 2021 and marking the third month of consecutive declines.

This is mainly due to the stabilization of supply-driven inflation, the strenghthening of MNT exchange rate against foreign currencies, the easing of foreign prices and transportation costs and the tightening monetary policy.

Yet, demand-side pressures persist amid higher budget expenditures, particularly on wages and pensions.