Updated: 26.01.2011

Riga, 15 May 2008

The Bank of Latvia Council resolved today to leave the interest rates of the central bank and the minimum reserve requirement unchanged.

Taking into account the Bank of Latvia's recent cut of the minimum reserve requirement for bank liabilities with a maturity of over 2 years, the lagged effect of this decision on economy via the financial sector, and the current ample liquidity in the financial system, it is not necessary to continue unwinding tight monetary policy conditions at the moment.

The interest rates set by the Bank of Latvia are as follow:

- refinancing - 6.0% per annum;
- overnight deposit facility - 3.0% per annum;
- overnight lending facility - 7.5% per annum.

The minimum reserve requirement for banks and branches of foreign banks was last changed on 24 April 2008 when it was reduced from 7% to 6% for bank liabilities with a maturity of over 2 years.