Mongolia economic policies 'too expansionary' - IMF | Agricultural Commodities | Reuters: "WASHINGTON Nov 28 (Reuters) - Mongolia's economic policies are "too expansionary" and are creating inflationary pressures, the International Monetary Fund warned on Monday, calling for further rate hikes.
In an appraisal of Mongolia's booming economy, the IMF welcomed recent monetary policy tightening. But it said it was not enough to contain rising inflationary pressures and economic overheating.
It said food price volatility "has disguised" underlying inflationary momentum, firmly in double digits.
A rapid acceleration in bank lending has put Mongolia's financial system "under stress" and the IMF urged the authorities to manage risks proactively to prevent problems from building up."
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