Mongolia's central bank cuts benchmark interest rate

Mongolia's central bank has announced the decision to cut its benchmark interest rate to 11 percent, Report informs referring to Xinhua.

"After taking into account the current and future state of the economy and financial markets, and external risks to the economy, the monetary policy council of the central bank made the decision to cut the benchmark interest rate by 1 percent to 11 percent," the Bank of Mongolia said in a statement.

The decision aligns with the objective of stabilizing inflation at the target level and securing economic and financial stability in the medium-term, it said.

According to the central bank, Mongolia's inflation, as measured by the consumer price index, eased to 6.4 percent in April, down by 4.9 percentage points compared to the same period 2023.

The country has set a goal to stabilize inflation around the target rate of 6 percent in the medium term.

In addition, the Asian country's forex reserves have risen to 5.25 billion U.S. dollars, hitting an all-time high, the central bank said, adding that the growth of forex reserves has contributed to maintaining the stability of the national currency's exchange rate.