Banks, Financial Services, Latvia, Legislation, Real Estate

The Bank of Latvia's marginal lending facility rate to banks that have used the facility no more than five working days within the previous 30 day period remains at 3%, writes LETA/Nozare.lv.

The marginal lending facility rate to banks that have used the facility no more than ten working days within the previous 30 day period remains at 6%.

The Bank of Latvia's marginal lending facility rate to banks that have used the facility more than 10 working days within the previous 30 day period remains at 9%.

The overnight deposit facility rate remains at 0.05%.

While the seven-day deposit facility rate remains at 0.075%.

The Bank of Latvia reduced interest rates this past July and September. The current rates were effective from September 24.

The Bank of Latvia notes that over the course of this year, the interest rates have been lowered gradually in view of the low inflation risks, and motivating banks to direct their free lats resources for the development of the economy. Inflation risks are still limited and the Bank of Latvia foresees no mid-term risks to price stability, yet economic growth has been more sustained than previously predicted. Moreover, a gradual redirection of the economy from external to domestic demand has been observed.

The Bank of Latvia Council therefore is of the opinion that current monetary policy conditions match the economic situation.