Mongolia's central bank keeps policy rate unchanged at 12.5 pct

ULAN BATOR, Sept. 17 (Xinhua) -- The Monetary Policy Committee of the Bank of Mongolia has decided to maintain the benchmark interest rate at 12.5 percent, the central bank announced on Thursday.

"We have decided to keep the policy rate at 12.5 percent, taking into account the outlook for macroeconomic conditions, inflation and risks in the financial sector," Sanjaa Narantsogt, governor of the Bank of Mongolia, said in a statement.

In mid-August, the central bank raised its benchmark interest rate by 0.5 percentage point to 12.5 percent.

Inflation stood at 12.5 percent at the end of August, up 3.7 percentage points from a year earlier, according to the bank.

Narantsogt warned that the risk of renewed inflationary pressures remains, driven by increases in fuel and energy prices, wages and government spending.