AKIPRESS.COM – The Bank of Mongolia has decided to increase the key rate by 2.5 percentage points to 9.0%, taking into account the current state of the economy and financial markets as well as the outlook for the environment domestic and foreign economy, reports Montsame.

The recent tension in international relations has become an additional source of uncertainty in the foreign and domestic economy. As the spectrum of uncertainty widens, commodity prices, especially crude oil and food prices, have risen sharply in international markets, and supply chain disruptions are set to persist , many countries face risks of higher inflation and weaker economic growth this year than before. expected.

Annual headline inflation reached 14.2% nationwide and 15.5% in Ulaanbaatar city in February 2022. High food and oil prices in international markets, transport and Logistical restrictions, which lead to additional transport costs, as well as supply disruptions have been identified as the main factors explaining recent developments in inflation. Although inflation gradually slowed in February, in line with our previous projections, the current inflation outlook is revised upwards due to recent international tensions.