ULAN BATOR, Aug. 13 (Xinhua) -- The Monetary Policy Committee of the Bank of Mongolia has decided to raise the benchmark interest rate by 0.5 percentage point to 12.5 percent, the central bank said Wednesday.
The decision was made after taking into account current conditions in inflation, the economy, and the banking and financial markets, as well as the outlook and risks stemming from domestic and external factors, the Bank of Mongolia said.
Mongolia's annual inflation rate, as measured by the consumer price index, stood at 13 percent nationwide at the end of July 2026. Rising prices for fuel, food, and administratively regulated goods and services accounted for the bulk of inflationary pressures, the central bank said.
The rate hike marks the first increase in the benchmark interest rate since March 2025.
The central bank said the decision is aimed at stabilizing inflation expectations, limiting the second-round effects of supply-side price increases, and keeping returns on the Mongolian tugrik in line with the objectives of monetary policy. ■