The Central Bank of Mongolia’s Monetary Policy Committee kept the policy rate unchanged at 12.5 percent, balancing moderating inflation against upside risks from fuel and global food prices, as well as possible increases in government spending and wages. Annual inflation fell to 12.5 percent nationwide in August, while core inflation eased to 6.8 percent. The economy grew 7.7 percent in the first half of 2026, driven mainly by mining and transportation, while other sectors remained subdued. Inflation is projected to ease gradually from the second quarter of 2027 and converge toward the upper bound of the target range by the end of that year, but expansionary changes to the 2026 budget amendment or 2027 budget could disrupt the outlook. Higher gold and copper prices have supported Mongolia’s terms of trade, improved foreign exchange reserve adequacy and helped keep the exchange rate relatively stable.
2026-09-17Central Bank of Mongolia
Central Bank of Mongolia holds policy rate at 12.5 percent as inflation risks persist
The Central Bank of Mongolia held its policy rate at 12.5 percent as annual inflation eased to 12.5 percent in August. Inflation is expected to moderate from the second quarter of 2027, although higher fuel and food prices and potential fiscal expansion pose upside risks.