OREANDA-NEWS. March 16, 2010. The Bank of Latvia Council resolved to reduce the Bank of Latvia refinancing rate from 4.0% to 3.5%, taking into account the stabilizing of the economic situation and limited inflation risk, reported the press-centre of Bank of Latvia.

The Bank of Latvia Council likewise resolved to introduce a new monetary instrument - a seven-day deposit facility with the Bank of Latvia and set its interest rate at 1.0%, to promote predictability of banking sector liquidity.

The Bank of Latvia Council also resolved to reduce the overnight deposit facility with the Bank of Latvia interest rate from 1.0% to 0.5% to motivate the banks to direct their available resources toward economic development.

All the above resolutions will take effect on 24 March 2010.

The Report of the Governor of the Bank of Latvia, Ilmars Rimsevics, at today’s press conference will be available in the news section of the Bank of Latvia’s home page www.bank.lv.