Bloomberg News

Latvian Central Bank Keeps Main Rate at 3.5% for 10th Meeting

November 15, 2011

Nov. 15 (Bloomberg) -- Latvia’s central bank left its benchmark interest rate unchanged for a tenth meeting as the country’s economic recovery gathers pace.

Latvijas Banka held the refinancing rate at 3.5 percent, Governor Ilmars Rimsevics said today at a news conference in the capital, Riga.

The economy grew a preliminary 5.7 percent from a year earlier in the third quarter, the quickest pace in almost 4 years, as private consumption, manufacturing and exports increased. Latvia plans to complete its 7.5 billion-euro ($10.2 billion) lending program from a group led by the European Commission and the International Monetary Fund this year after it comes to a final agreement on the 2012 budget.

The refinancing rate affects the minimum interest rate on central bank swaps and repurchase agreements, worth about 75 million lati ($145 million) a week. The bank runs a quasi- currency-board system, where lati in circulation are backed by foreign currency.

--Editors: Alan Crosby, Andrew Langley

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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