ULAANBAATAR—In a move aimed at stabilizing inflation, Mongolia’s central bank has announced a reduction in its benchmark interest rate to 10 percent.

According to the Namibia Press Agency, Byadran Lkhagvasuren, governor of the Bank of Mongolia, stated that the rate cut from 11 percent to 10 percent was influenced by an analysis of the current and projected economic conditions, financial market stability, and external economic risks. This decision marks the second rate cut this year, following a similar 1 percentage point reduction in May.

The central bank reports that Mongolia’s inflation rate stood at 6.5 percent in August, a decrease of 3.5 percentage points from the same period last year, though it noted a 1 percentage point increase from July. The central bank remains focused on achieving a medium-term inflation target of around 6 percent, aligning its monetary policy accordingly to support economic stability.