Mongol Bank has released its second-quarter Monetary Policy Report, outlining the reasoning behind the Monetary Policy Committee’s decisions, the current state of the economy, inflation trends and medium-term economic prospects.
The quarterly report provides an overview of major economic indicators, including inflation, economic growth, financial market conditions, external sector developments and key risks that may affect the economy in the coming period.
According to the report, the Monetary Policy Committee decided to maintain the policy interest rate at 12 percent in order to support price stability, contain inflationary pressures, and create conditions for sustainable economic growth over the medium term.
The bank noted that inflation has risen in recent months, driven mainly by increases in the prices of meat, vegetables and fuel. However, these price increases are considered to be largely caused by supply-side factors. Unless additional major supply shocks occur, inflation is expected to gradually decline from the second half of 2026 and stabilize within the central bank’s target range by 2027.
The report highlighted several factors supporting economic growth. Coal exports have recovered, while increased production in the copper and gold mining sectors has contributed positively to economic activity. In addition, large-scale construction projects and continued growth in bank lending and investment are expected to help sustain economic expansion.
Mongol Bank also emphasized that economic risks remain elevated. Key risks identified in the report include geopolitical uncertainties in the international environment, fluctuations in global fuel prices and expansionary fiscal policy. According to the central bank, sharp changes in global energy prices could increase inflationary pressures, while excessive fiscal expansion may affect macroeconomic stability by creating additional demand-side pressures.
The bank stated that it will continue to closely monitor domestic economic conditions, inflation developments, international market trends, and external risks. The central bank will take appropriate monetary policy measures if necessary to maintain price stability and support balanced economic growth.
