The Monetary Policy Committee of the Bank of Mongolia, at its meeting convened on September 15-16, resolved to maintain the policy rate at 12 percent. The decision was adopted in consideration of the prevailing economic, banking, and financial market conditions, as well as external and domestic developments and associated risks.
The resolution is aligned to stabilise inflation at the target level in the medium term and reinforce the resilience of the economy and the financial system. The Committee emphasised that subsequent monetary policy measures will be determined and implemented in accordance with changes in external and internal economic conditions, the trajectory of inflation, and the overall economic outlook.
As of August 2025, annual inflation stood at 8.8 percent nationwide and 9.8 percent in Ulaanbaatar. While inflation has gradually moderated since February due to the phased tightening of monetary and financial policy, August witnessed relative increases in the prices of meat, vegetables, and flour, thereby contributing to a renewed rise in food inflation.
Inflation is projected to ease gradually and fall within the target range in 2026. Nevertheless, Governor of the Bank of Mongolia B. Lkhagvasuren cautioned that government projects and their financing, export revenues, exchange rate fluctuations, supply constraints, and weather-related changes in food prices may continue to exert upward pressure on inflation.
In the first half of 2025, the economy expanded by 5.6 percent, with the agricultural sector serving as the principal driver of growth. In the latter half of the year, economic expansion is expected to be supported by increased production of copper concentrate and the commencement of new development projects.

Published Date:2025-09-18