A.Batsukh: To decrease inflation under 1 digit

Sep 26 • Economy, Finance, Government, Interview, Real Estate • 747 Views • No Comments on A.Batsukh: To decrease inflation under 1 digit

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Few clarifications were made from Mr. A.Batsukh, the President of the Bank of Mongolia.
Q: Was inflation issue discussed by the Cabinet Meeting?
A.Batsukh: We discussed about the budget draft and monetary policy of the next year. Also discussed about the factors that is fueling inflation. Expenditures that are affecting inflation must be shrunk in the budget. Salary and pension were increased in order to protect risk of oil, food and wheat price increase. Inflation rate will be around 29-30% by the end of this year. We discussed about increase of productivity and decrease of expenditures. We will support state budget through policy. Gas and wheat supply affected inflation a lot. It will be settled next year.
Q: Will financial crisis in abroad affect us?
A.Batsukh: The reason and factor of the foreign market crisis are much different. Mortgage loan was distributed as promotion with long term in USA and it was the main reason of this crisis. We don’t have such a thing. Mortgage loan weighs only 10% in Mongolia.

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