ULAN BATOR, July 30 (Xinhua) -- The Bank of Mongolia on Monday said interest rates were being cut gradually in the 2018-2023 period to keep inflation stable and increase foreign exchange reserves.

The other objectives are strengthening fiscal responsibility and diversifying the economy.

"High interest rate is considered to be the biggest obstacle for not only business owners and private companies, but also citizens," the central bank said in a statement.

The measure, it added, would meet citizens' hope for lower interest rates so that they can get loans more easily.

The central bank will also expand the loan database and loan guarantee mechanisms, launch reforms to reduce loan risk, and increase the operational efficiency of banks.

It cut the benchmark interest rate from 11 percent to 10 percent in March, in a bid to support economic growth while keeping inflation below 8 percent in 2018.