OREANDA-NEWS. On July 17, 2008 The Bank of Latvia Council resolved to leave the interest rates of the central bank and the minimum reserve ratio unchanged, reported the press-centre of Bank of Latvia.

The Bank of Latvia reduced the minimum reserve ratio for bank liabilities with a maturity over 2 years as of 24 April 2008, thereby supporting the stabilisation of the lending growth, with the lats rates on the interbank market and those paid by borrowers decreasing.

 Taking into account the lagged effect of this decision on the economy and the still ample liquidity in the financial system, no further unwinding of the tight monetary policy conditions is required.

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 refinancing rate was last raised on 18 May 2007 by 0,5 percentage points to 6,0%. The minimum reserve ratio 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.