Mongol Bank lowers policy interest rate to 10.5 percent

Mongol Bank’s President N.Zoljargal reporting on changes to monetary policy interest rate

The Monetary Policy Council of Mongol Bank has reported that the policy interest rate has been lowered by 1.5 percentage point on May 5, to 10.5 percent.

Mongol Bank reported that the newly set policy interest rate is the lowest since 2013. At the beginning of this year, the bank decreased the policy interest rate from 13 to 12 percent. Mongol Bank reported that the drop in the annual inflation rate, which fell to 1.5 percent in 2015, provided possibilities for the bank to reduce the policy interest rate.

The council concluded that a positive and stable outlook on foreign direct investment and its recovery in the mid-term will support the external macroeconomic balance. Mongol Bank’s Monetary Council believes that this decision to gradually ease monetary policy will positively impact economic growth and loans, and support the private sector’s investments and economic activities.