The Central Bank of Mongolia  decided to increase the policy interest rate by 1 percentage point to 10% on the existing basis. The decision is aimed to stabilize the inflation expectation of Mongolia in the medium term, promote the internal and external balance of the economy and maintain the relative stability of the local currency exchange rate, reported the bank’s monetary policy committee.

It is reported that the national inflation rate of Mongolia will reach 15.1% in the first five months of 2022. Among them, the inflation rate in the capital Ulaanbaatar is as high as 16.2%. The rise in the prices of fuel, food and imported goods is the main reason for the rise in the inflation rate in Mongolia in the first five months of this year.