BANK OF MONGOLIA RAISES THE POLICY RATE TO 12.5 PERCENT

At its extraordinary meeting held on August 12, 2026, the Monetary Policy Committee of the Bank of Mongolia decided to raise the policy rate by 0.5 percentage points to 12.5 percent and increase the reserve requirement ratio on banks’ MNT-denominated liabilities by 0.5 percentage points to 14.5 percent.

In July 2026, annual inflation reached 13.0 percent both nationwide and in Ulaanbaatar. The increase was mainly driven by higher prices for fuel, food, and government regulated goods and services.

The decision is aimed at stabilizing inflation expectations, containing the pass through effects of price increases, and ensuring that returns on Mongolian tugrik denominated assets remain consistent with the objectives of monetary policy.

UBIM continues to assess developments in monetary policy, inflation, and financial markets in relation to the investment and financing conditions of Ulaanbaatar’s projects and programs.