Mongolia Cuts Rates for First Time Since 2009 to Support Growth

Mongolia’s central bank cut interest rates for the first time since 2009 after determining that the outlook for inflation is benign and deciding to “cautiously” ease policy, its chief economist said.

The Bank of Mongolia reduced its policy rate to 12.5 percent from the previous 13.25 percent effective yesterday, according to a table on the monetary authority’s website and confirmed by chief economist Sandagdorj Bold. The central bank is confident it will be able to achieve its 8 percent inflation target for this year, Bold said in a telephone interview.