Bank of Mongolia Raises Policy Rate to 12.5 Percent
The Bank of Mongolia raised its policy rate by 0.5 percentage points to 12.5 percent after an extraordinary Monetary Policy Committee meeting. It also increased commercial banks' reserve requirement by 0.5 points to 14.5 percent. The central bank cited persistent inflation, fuel and food prices, and risks of secondary price increases. Annual inflation reached 13 percent in July. At the same time, stronger coal and copper exports supported a USD 567 million balance-of-payments surplus in the first half of 2026 and lifted foreign-exchange reserves to USD 7.9 billion.
M-International Editorial DeskUpdated August 13, 2026
The Bank of Mongolia tightened monetary policy after an extraordinary meeting, increasing the benchmark rate by half a percentage point to 12.5 percent. The required reserve ratio for commercial banks was also raised by half a point to 14.5 percent.
The central bank said the measures were intended to anchor inflation expectations and reduce the risk that fuel and food price increases spread more broadly through the economy. Nationwide annual inflation reached 13 percent in July. Seasonal meat and vegetable supplies may ease food inflation, but energy prices remain a risk. Strong coal and copper export receipts provided some external support: the first-half balance of payments recorded a USD 567 million surplus and foreign-exchange reserves rose to USD 7.9 billion.