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.
Related Articles
European Union increases humanitarian aid to Syria to €202mn
The European Union announced on May 27 an increase in humanitarian aid to Syria to more than €202mn for this year, SANA reported. The additional funding will ... more
MBH Bank Tier 2 bond sale oversubscribed 3.5 times
Hungary’s MBH Bank has completed a successful €200mn Tier 2 bond issuance amid strong investor appetite. The ten-year notes, callable after five years, are priced with a 6.875% coupon following ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
19 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago