OREANDA-NEWS.  September 24, 2012. In view of the fact that risks for price stability in the medium term are limited and inflation continues to go down as well as the expected negative influence of the European debt crisis on the Latvian economy, the Bank of Latvia council today resolved to reduce interest rates set by the Bank of Latvia:

-          the Bank of Latvia refinancing rate from 3.0% to 2.5%;
-          the bank overnight deposit facility with the Bank of Latvia interest rate from 0.10% to 0.050%;
-          the bank seven-day deposit facility with the Bank of Latvia interest rate from 0.125% to 0.075%;
-          the marginal facility interest rates:
for the facility used no more than for five working days in the previous 30 days from 4.0% to 3.0%,
for the facility used no more than for 10 working days in the previous 30 days from 7.0% to 6.0%,
and for the facility used for more than 10 working days in the previous 30 days from 10.0% to 9.0%.

The easing of the monetary policy conditions conducted subsequent to the lowering of Bank of Latvia interest rates in March and July will provide the banks with an additional stimulus to direct available lats resources for economic development. The new lending facility interest rates will be applied to banks as of 24 September 2012. The mandatory reserve requirement set for the banks has not been changed.

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