Parliament debates monetary policy
Parliament is debating a protocol about state monetary policy in 2012.
N.Ganbyamba said salaries aren’t keeping up with inflation, which hurts the people. He said Government salaries have increased by 136 percent since 1990 while inflation has increased by 154 percent. He said Mongol Bank has increased its rates to curb inflation, but that makes it harder for businesses to afford loans.
He asked the bank to find another way to fight inflation.
D.Terbishdagva noted that the central bank in the United States submits rate increases to Congress and Congress discusses the issue. But he said Mongol Bank decides its rates unilaterally, and the Government and the central bank need to better cooperate.
Mongol Bank President L.Purevdorj replied that Mongol Bank has no choice but to raise rates when Government spending increases and inflation is rising.
N.Ganbyamba said salaries aren’t keeping up with inflation, which hurts the people. He said Government salaries have increased by 136 percent since 1990 while inflation has increased by 154 percent. He said Mongol Bank has increased its rates to curb inflation, but that makes it harder for businesses to afford loans.
He asked the bank to find another way to fight inflation.
D.Terbishdagva noted that the central bank in the United States submits rate increases to Congress and Congress discusses the issue. But he said Mongol Bank decides its rates unilaterally, and the Government and the central bank need to better cooperate.
Mongol Bank President L.Purevdorj replied that Mongol Bank has no choice but to raise rates when Government spending increases and inflation is rising.
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