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Mongolia Steadies Policy as Central Bank Holds at 12% and Institutions Press Ahead on Gold Veto, Cases and Projects

The bank linked August’s 8.8% inflation to last November’s electricity tariff hike, with easing considered only if stability persists.

Overview

  • Mongolbank kept the policy rate at 12% and warned that state projects, export receipts, currency movements and food supply could reheat inflation after August’s 8.8% reading.
  • Governor B. Lkhagvasuren said last year’s electricity price rise is a major driver of current prices, noting regulated items contributed 1.9 percentage points to August inflation.
  • Parliament’s Budget Committee voted to accept the president’s partial veto of the ‘Alt‑3’ gold measure, citing concerns over protected areas and constitutional procedure.
  • Prosecutors sent multiple indictments to court, including a case alleging ₮69.8 million was embezzled during Khöshgiin Khöndii works by arranging salaries for no‑show employees.
  • Health officials reported emergency caseloads dominated by children and cautioned about higher infectious‑disease risks from October, as donors supplied pediatric monitoring equipment; separately, China’s ambassador detailed SCO grant support and new steps to expand Mongolian exports to China.