The Bank of Mongolia’s Monetary Policy Committee kept its policy rate at 12.0 % at the 18–20 March meeting, judging that the recent drop in headline inflation to 6.5 % in February—near the midpoint of the 4–6 % target band—was encouraging but outweighed by heightened geopolitical risks and the prospect of higher fuel and food prices that could rekindle price pressures. After a 200 bp hike in March 2025, the Committee has maintained the rate at 12 % through subsequent reviews. No changes were announced to other operational settings. The authorities noted that disinflation has been driven by softer non-food prices, while brisk food costs have recently turned upward; inflation is still projected to stay within the target range, supported by last year’s tightening. Economic growth, led by agriculture, mining and industry, is forecast to accelerate to 6.8 % in 2025 before converging toward potential, bolstered this year by mining output and large-scale construction projects. High global gold and copper prices are improving terms of trade, yet Middle East tensions pose downside risks to external demand and upside risks to commodities. The Committee reiterated its objective of anchoring inflation at 5 % ±2 pp from 2027 and will adjust policy as incoming data on inflation, supply factors and global conditions evolve.
Central Bank of Mongolia 2026-03-20
Bank of Mongolia holds policy rate steady at 12.0%
Bank of Mongolia kept its policy rate at 12.0 % at the 18–20 March meeting, citing easing headline inflation to 6.5 % yet warning that geopolitical tensions could reignite fuel and food price pressure. The Committee still sees inflation staying within the 4–6 % band, reaffirmed its 5 % ±2 pp 2027 goal, and said it stands ready to adjust policy as conditions evolve.