Mongolia Hikes Interest Rate to 15% Protect Currency
- New government announced spending freeze, salary cuts today
- Reverses decision in May to cut benchmark borrowing costs
Mongolia Raises Rates to Record High of 15%
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The central bank of Mongolia raised its key interest rate to 15 percent to protect the currency, reversing a cut in borrowing costs to 10.5 percent in May.
The Mongolian tugrik initially rose after the announcement. By 4:26 p.m. in Ulaanbaatar it was falling again, and traded at 2,268 per dollar. The currency is headed for its 24th straight daily decline.