New Policy of the Bank of Mongolia

The Bank of Mongolia managed to stabilise inflation without increasing the monetary policy rate.
Therefore, more attentions were paid on factors such as a rise in prices of consumer goods and fuel.

It is important to maintain the fuel price in a sustainable way. In order to maintain the price, they have chosen one way. Within the scope of this work, loan in volume of MNT 94 billion was granted to 11 companies, and forward discussions amounted to USD 67 million were made. As a result, fuel price per litre was increased by MNT 50, instead of MNT 200. Moreover, the State Great Khural is planning to spend MNT 22 billion for storehouse construction.

While the Bank of Mongolia focuses on reducing the cost of supply in order to stabilise the prices for consumer goods such as meat and flour. An agreement to invest MNT 61 billion to stabilise price for flour and MNT 87 billion for meat was made.

Besides, the Bank of Mongolia is opening a door to have a mechanism to reduce currency fluctuation risks and damages. The Bank of Mongolia could held the inflation rate at 14 percent which was about to rise up to 19 percent. The inflation rate from September until today was reduced by 0.6-1.4 percent compared with September-January in 2012.