Mongolia’s central bank cuts interest rates by 100 bp

By bne IntelliNews January 15, 2016

The Bank of Mongolia has lowered its policy interest rate by 100 basis points to 12% amid low and stable inflation and expected low demand-pull inflationary pressure, the central bank said in a statement on January 14.

Annual consumer price inflation (CPI) stood below the targeted inflation level (8.1%) for the last five months, decreasing to 2.9% in November 2015, down from 12.5% a year earlier, which “broadens monetary policy room towards expansion”, the statement said. “Supply-driven inflation has still been low and stable whilst demand-pull inflationary pressure is expected to be at low level.”

On the demand side, inflationary pressures are unwinding as Mongolia’s economic growth cools off. The central bank has phased out the monetary stimulus that kept the economy afloat in 2013 and 2014. Annual GDP growth slowed down to 7.8% in real terms in 2014, from 11.6% in 2013, according to figures from the National Statistical Office. The World Bank forecast the country’s GDP growth to decelerate further to 2.3% in 2015.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Kazakh central bank approves €1bn assistance package for four banks

Kazakhstan’s central bank announced on October 18 that it has approved an assistance package worth KZT410bn (€1.04bn) for ATF Bank, Eurasian Bank, Tsesna Bank and Bank ... more

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more

Most Read

  1. KRUK REPORT: Is Ukraine changing its Donbas policies?
    5 days ago
  2. MOSCOW BLOG: Russia’s import substitution has not been a great success
    8 days ago
  3. Poland rises, Croatia surprises on CEE Fast 50
    1 day ago
  4. Moldova's Ascom moves ahead with recovering $500mn from Kazakh state
    9 days ago
  5. INTERVIEW: The quiet thunder of Ruben Vardanian
    10 days ago
  1. STOLYPIN: Russia balances wargames with mindgames in Zapad exercises
    28 days ago
  2. Russia to bring in record breaking harvest of 127mn tonnes
    20 days ago
  3. Investors ask which Russian bank domino will be the next to topple
    25 days ago
  4. Eastern Europe’s blockchain revolution
    13 days ago
  5. INTERVIEW: de Villepin says Ukraine should declare itself neutral
    10 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss