Bank of Mongolia Hikes Interest Rate 50bps to 12.25%

The Bank of Mongolia increased its policy rate by 50 basis points to 12.25% from 11.75% previously. The Bank said: "The rapid expansion of budget expense, cash hand-out from the Human Development Fund and the high increase in loans are contributing to higher demand. This sharp increase in demand builds the pressure on core inflation even the total supply and the real capacity of economy...