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.

Related Articles

World Bank forecasts a 0.4% y/y decline in Belarus's GDP for 2017

The Belarusian economy will decline by 0.4% year-on-year in 2017, followed by a modest growth of 0.7% in 2018 and 1.2% in 2019, the World Bank forecasts in its Belarus Economic Update published on ... more

EIB and Belarus sign Framework Cooperation Agreement

The European Investment Bank (EIB) and Belarus inked the Framework Agreement on Cooperation on May 15, which paves the way for the lender to invest up to €200mn in Belarusian projects, the Foreign ... more

Ex-owners of Ukraine's PrivatBank fail to restructure loan portfolio, central bank says

Former owners of Ukraine's biggest state lender PrivatBank, which was nationalised in December, Ihor Kolomoisky and Hennady Bogolyubov, failed to demonstrate progress in the fulfillment of its ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss