BOM INCREASES POLICY RATE

Ulaanbaatar /MONTSAME/ The Bank of Mongolia (BoM) increased the policy rate by 1.8 units, reaching 12.0%, at a meeting of its Fiscal Policy Council on Wednesday. The inflation rate expressed by the consumer price index reached 14.6% nationwide and 15.1% in the capital city late June of 2014. The flow of foreign direct investments and exchange reserves have been declining in the last two years, moreover, no effective actions are undertaken to augment the flow of foreign exchanges and to improve the balance of payment, the bank considers. The above decision has been made by the BoM with purposes to mitigate the pressure over payment balances, to prevent an intensification of inflation rates, to ensure middle- and long-term financial stability, to prevent possible risks in a stability of macro economy, and to save the incomes of people, said N.Zoljargal, the BoM president, at a press conference.