Under the “Extended Funds Facility” program, the Bank of Mongolia takes monetary policy actions upon mutual agreement with the IMF. Decisions regarding monetary policy measures take careful consideration of the expected inflation, balance of payments outlook and macroeconomic stability in the medium term. As the annual inflation rate is expected to stabilize around the target level and the pressure on balance of payments is not expected to be heightened, the Bank of Mongolia decided to reduce the policy rate by 1 percentage point to 10 percent, in order to support economic activities and reduce the cost of refinancing, considering the debt burden of the private sector.