According to the Bank of Mongolia’s statistics, the weighted average interest rate on new loans issued in November was 17 percent. The average interest rate on loans which fell to 16.8 percent in the previous month increased by 0.2 percentage points. However, the interest rate has dropped by 0.2 percentage points since the beginning of the year. Particularly, the average interest rate on loans issued to citizens in the corresponding month reached 16.9 percent and to private entities 17 percent. “Stable macroeconomic environment contributes to lower interest rates,” said director of the BoM’s Statistics Department. The central bank’s interest rate reduction strategy is in progress with 60 percent. A total of 340 measures were taken within the framework of the strategy. Most recently, the Bank of Mongolia has kept the policy interest rate at 11 percent. The policy rate has been maintained steady for the last year. The central bank has announced to reduce its inflation target rate by two percentage points to six in 2021. It is expected to have a direct impact on reducing savings and interest rates.

Published Date:2019-12-25