Central Bank of Mongolia Holds Policy Rate at 12%

The Central Bank of Mongolia’s Monetary Policy Committee left the policy interest rate unchanged at 12% in its June 24, 2026 statement, saying the decision reflected the current state of the economy, banking and financial markets, and domestic and external risks, with annual inflation having accelerated to 11.2% in May on higher fuel and food prices even as most non-mining sectors remained weak and core inflation stayed relatively low. The central bank said first-quarter 2026 economic growth accelerated to 7.9%, driven mainly by mining and transportation, and expects growth this year to be supported by higher mining production and continued large-scale construction projects, while the non-mining sector gradually recovers in the coming years. It said inflation has temporarily moved above target because of supply-side factors but is expected to stabilize within the medium-term target range, consistent with its objective of stabilizing inflation at 5% within a plus-or-minus 2 percentage point band from 2027. Externally, it cited rising oil and energy prices linked to the Middle East conflict as a source of stronger global inflationary pressure, while stronger-than-expected growth in China and higher-than-expected gold and copper prices were seen as supportive for Mongolia’s growth and trade conditions. The committee said it will decide whether to raise the policy rate based on future inflation developments, supply-side factors, and domestic and external economic conditions.