OREANDA-NEWS. July 18, 2011. In view of the fact that the current inflation risk factors are not related to a rise in demand and that risks for price stability in the medium term are limited, the Bank of Latvia Council resolved to leave unchanged the interest rates set by the Bank of Latvia and the mandatory reserve requirement in place for the banking sector, reported the press-centre of Bank of Latvia.

Even though inflation has been on the rise in recent months, it has been, as before, on account of several temporary factors: the rises in global oil and food prices and Latvian tax rates. It can be predicted that in the medium term inflation will moderate, and the annual average inflation will return to the 2.5-3% level.