Mongolian central bank opposes interest rate cap

Ulaanbaatar
Ulaanbaatar, capital of Mongolia
François Philipp

The Bank of Mongolia (BoM) has opposed plans to introduce caps on interest rates in the country.

Lawmakers hope the caps would lower funding costs for businesses and individuals and spur the economic recovery, as Mongolia has some of the highest interest rates in the world.

But the central bank warns against such an approach. A reduction in rates should be achieved via a more favourable macroeconomic, financial and legal environment, not a mandatory cap, Bank of Mongolia governor Nadmid

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