Mongolia's central bank keeps benchmark interest rate unchanged

ULAN BATOR, Sept. 20 (Xinhua) -- The monetary policy council of Mongolia's central bank on Thursday kept the benchmark interest rate unchanged at 10 percent, expressing its confidence that inflation is near its 8-percent target.

"The decision aims to stabilize inflation around the target rate of 8 percent in the medium term, and bolster economic and business activity," Byadran Lkhagvasuren, vice chairman of the Bank of Mongolia, said at a press conference after a council meeting.

Annual inflation was at 6.0 percent in August, he said.

In March, the bank cut the benchmark interest rate from 11 percent to 10 percent.

The country's gross domestic product (GDP) expanded 6.3 percent year-on-year in the first half of 2018.

The International Monetary Fund prediction for the country's GDP growth is 5 percent this year and 6.3 percent next year.