ULAN BATOR, March 20 (Xinhua) -- The Bank of Mongolia announced on Friday that it will keep its benchmark interest rate unchanged at 12 percent.

According to a statement from the central bank, the country's inflation declined to 6.5 percent at the end of February this year, approaching the midpoint of the target range, largely due to the impact of last year's monetary policy measures.

"Despite positive developments in current and future domestic economic conditions, we have decided to maintain the policy rate at 12 percent, given rising geopolitical tensions and external uncertainties," the statement said.

The Bank of Mongolia raised the policy rate by 2 percentage points to 12 percent in March 2025. The rate has remained unchanged since then. ■