Ulaanbaatar
Mongolbank sets policy rate at 10 percent
Economy
Ulaanbaatar /MONTSAME/ The Mongolbank’s Monetary Policy Council has decided to reduce its policy rate to 10 percent.
At its meeting on March 23, the Council also resolved to fix the amount of its MNT reserve ratio at 10.5 percent and foreign exchange reserve ratio at 12 percent. The Council sees that the decision will reduce short-term savings rate of banks and support businesses through the reduced interest.
“Reduced policy rate will augment the economy. The policy rate has been reduced based on the assumption to maintain inflation within the targeted level” said B.Bayardavaa, Head of Monetary Policy Department of the Mongolbank. In specific, inflation measured by consumer price index was 6.9 percent on the national level and 8.1 percent in Ulaanbaatar as of February.
According to officials, external demand has exceeded expectations, and export price has been maintained high, thus leaving positive impact on the balance of payments and economic outlook.
At its meeting on March 23, the Council also resolved to fix the amount of its MNT reserve ratio at 10.5 percent and foreign exchange reserve ratio at 12 percent. The Council sees that the decision will reduce short-term savings rate of banks and support businesses through the reduced interest.
“Reduced policy rate will augment the economy. The policy rate has been reduced based on the assumption to maintain inflation within the targeted level” said B.Bayardavaa, Head of Monetary Policy Department of the Mongolbank. In specific, inflation measured by consumer price index was 6.9 percent on the national level and 8.1 percent in Ulaanbaatar as of February.
According to officials, external demand has exceeded expectations, and export price has been maintained high, thus leaving positive impact on the balance of payments and economic outlook.
Kh.Aminaa
