BM increases policy rate

Ulaanbaatar /MONTSAME/ At its meeting on Wednesday, the Fiscal Policy Council at the Bank of Mongolia (BoM) made a decision to increase the policy rate by 1.0%, reaching 13.0%. Basic inflation rate is still showing 12.6% which is high due to a fluctuation of the rate of Mongolian togrog (MNT) against foreign currencies and the state-regulated price increases, although the inflation structure had a positive change in last two years and the inflation rate by consumer price index declined to 11.0% in end of 2014. Moreover, the currency flow to the national economy is still low, and the foreign investment annually decreased in last three years. So, the measure was taken to augment the policy rate in ord