The Bank of Mongolia’s Monetary Policy Committee held the policy rate at 12.5% in September, citing the outlook for inflation and economic activity amid elevated domestic and external risks. This followed holds at 12% in December, March and June, representing a net 50-basis-point rise by September. Nationwide annual inflation eased to 12.5% in August as increased meat and vegetable supply slowed domestic food-price growth, while core inflation declined slightly to 6.8%. Inflation is projected to ease gradually from the second quarter of 2027 and approach the upper end of the target interval by year-end, although fuel prices, global food costs, fiscal spending and wages pose upside risks. The economy grew 7.7% in the first half of 2026, led by mining and transportation, while other sectors remained weak and business credit growth stayed relatively high. High gold and copper prices improved the terms of trade and foreign reserve adequacy, helping keep the tugrik relatively stable, while Middle East conflict lifted oil and energy prices and global inflation pressures. The committee said future policy steps will depend on inflation, supply-side factors and external and domestic conditions, with the 2026 budget revision and 2027 draft budget posing material risks to the outlook.
2026-09-17Central Bank of Mongolia
Central Bank of Mongolia Holds Policy Rate at 12.5%
The Central Bank of Mongolia held its policy rate at 12.5% in September as annual inflation eased to 12.5% in August, while the economy grew 7.7% in the first half of 2026. Inflation is expected to moderate from the second quarter of 2027, although fuel and global food prices, fiscal spending, wages and budget plans pose upside risks.