Not all economic analysts are agreed
that the 11% policy rate the Mongol Bank has left unchanged since last year
will help control inflation, but the Bank has said it will retain the rate in
2011. This is despite the fact that a high policy rate means commercial banks
charging more interest on loans to the private sector, thereby stalling economic
growth.

The MNT30 billion that SMEs have
been lent is much less than what the sector needs but the loans were for longer
periods and carried lower interests than those from commercial banks.  Banks, however, are unlikely to change their
policy, no matter what businessmen demand.