Ulaanbaatar
Inflation drops to one-digit in 2015
EconomyUlaanbaatar /MONTSAME/ The Bank of Mongolia reports that annual inflation measured by Consumer Price Index decreased to 1.9 % as of November of 2015, and has remained lower than the targeted level for the last five months. Supply-driven inflation has been low and stable whilst demand-pull inflationary pressure is expected to be at low level.
At its meeting on December 22 of 2015, the Monetary Policy Committee (MPC) of the Bank of Mongolia decided to cut the policy rate by on percentage point down to 12 percent. This decision came into force on January 14.
Positive and stable outlook for foreign direct investments and their recovery in the medium-term shall support macroeconomic external balance, according to experts.
The decision on cautious and gradual monetary easing shall effect promoting monetary and credit growth, private sector investments and economic activities, the Bank of Mongolia said.
By the end of 2008 and the beginning of 2009, Mongolia suffered a financial crisis that affected the national economy and raised the inflation rate to 34 percent. Thanks to the central bank's policy and price fall in some consumer products such as meat, the inflation rate has now gone down to one digit number.
