Ulaanbaatar
Annual inflation rate becomes 1.9 per cent
视频The Bank of Mongolia has reported annual inflation measured by Consumer Price Index decreased to 2.9% as of November 2015, and it is still been lower than the targeted level for the last 5 months, so it broadens monetary policy room towards expansion. Supply-driven inflation has still been low and stable whilst demand-pull inflationary pressure is expected to be at low level.
As its meeting on 22 December 2015, the Monetary Policy Committee (MPC) of the Bank of Mongolia decided to cut the policy interest rate by 1.0 percentage point to 12.0 percent, and this decision will come into force from January 14 of 2016.
According to experts, supply-driven inflation has still been low and stable whilst demand-pull inflationary pressure is expected to be at low level. Positive and stable outlook on foreign direct investment and its recovery in the medium-term shall support macroeconomic external balance.
This decision on cautious and gradual monetary easing shall positively affect promoting monetary and credit growth, private sector investments and economic activities, the Bank of Mongolia said.
By end of 2008 and beginning of 2009, Mongolia suffered from a financial and economic crisis which affected the national economy, and the inflation rate reached 34 per cent. Thanks to a policy by the Bank of Mongolia, the inflation rate has gone down to one-digit number.
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