Mongolia Holds Policy Interest Rate at 11%

The Bank of Mongolia held its policy rate at 11 percent during its March meeting, saying economic recovery is expected to keep its momentum and inflation outlook remains around the target level.

Policymakers also noted that if domestic demand continues to expand sharply, the policy rate may need to be raised in the upcoming periods.

Meanwhile, the bank revised the upper limit on debt service to income ratio to 60 percent in the wake of upcoming wage increases, in order to gradually ease household debt burden that surged during the past years.