Upper limit on debt to income ratio to be tightened
EconomyUlaanbaatar /MONTSAME/
As of February 2019, annual
inflation has reached 6.9 percent nationwide and 7.9 percent in Ulaanbaatar
city. Fluctuations in inflation are mainly driven by changes in the prices of
gasoline, meat and solid fuel, while demand-pull inflation remains relatively
stable.
This year, economic recovery is
expected to keep its momentum and inflation outlook remains around the target
level. The Monetary Policy Committee decided to keep the policy rate unchanged
this time, considering demand, supply and external factors underlying
inflation, their outlook and sentiment in the business environment. In the
event that domestic demand continues to expand sharply, the policy rate may
need to be raised in the upcoming periods.
The decision to tighten the upper
limit on debt service to income ratio in the wake of upcoming wage increases,
serves the objective to gradually ease household debt burden that surged during
the past years, reaching substantially high level.
The Monetary Policy Committee’s
decisions are consistent with the Bank of Mongolia’s objectives to keep
inflation rate around the target rate and to ensure macroeconomic and financial
stability in the medium term.
Source: mongolbank.mn