Mongolia’s central bank raised its key interest rate for the third time this year by 100bps to 10%, as the country tries to control the soaring inflation and a rapidly weakening currency. The central bank specifically mentioned that inflation was on the rise due to geopolitical pressures, while exports are falling due to border restrictions with China. The Mongolian tugrik fell 9% against the USD this year, making imports more expensive and compounding the effects of rising prices overseas. Inflation rose 15.1% in May, food prices climbed 18%, and transport prices jumped 26% from a year earlier. The central bank signaled it would consider further interest rate hikes if inflation does not decline.