Central Bank of Mongolia Leaves Monetary Policy Unchanged

2026-06-24 14:33 By Joana Taborda 1 min. read

The central bank of Mongolia kept its key policy rate unchanged at 12% in June 2026, citing the current state of the economy, banking system, and financial markets, as well as domestic and external conditions and associated risks.

Annual inflation has picked up in recent months, driven by rising fuel and food prices, reaching 11.2% in May.

Looking ahead, increases in meat and fuel prices are expected to moderate gradually, with inflation projected to stabilise within the central bank’s 5% target range (±2 percentage points) over the medium term.

However, upside risks to prices remain if supply-side pressures persist, including adverse seasonal conditions, animal diseases, and geopolitical uncertainties linked to the Middle East and the Russia-Ukraine conflict, particularly if spillovers prove stronger than expected.

Policymakers said future policy decisions will depend on developments in inflation, supply-side factors, and both domestic and external economic conditions.



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Central Bank of Mongolia Leaves Monetary Policy Unchanged
The central bank of Mongolia kept its key policy rate unchanged at 12% in June 2026, citing the current state of the economy, banking system, and financial markets, as well as domestic and external conditions and associated risks. Annual inflation has picked up in recent months, driven by rising fuel and food prices, reaching 11.2% in May. Looking ahead, increases in meat and fuel prices are expected to moderate gradually, with inflation projected to stabilise within the central bank’s 5% target range (±2 percentage points) over the medium term. However, upside risks to prices remain if supply-side pressures persist, including adverse seasonal conditions, animal diseases, and geopolitical uncertainties linked to the Middle East and the Russia-Ukraine conflict, particularly if spillovers prove stronger than expected. Policymakers said future policy decisions will depend on developments in inflation, supply-side factors, and both domestic and external economic conditions.
2026-06-24
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