Latvia eases overnight lending rates to banks

RIGA: Latvia's central bank on Thursday said it was easing its various overnight lending rates to banks, saying financial market conditions had stabilised since they were raised in 2008 to protect the lat currency.

It left its key benchmark refinancing rate unchanged at 3.50 percent, it said in a statement.

The bank sets the rates for overnight lending depending on how often banks use the facility, ranging from 7.5 percent to 30 percent. It said it had decided the cheapest rate would be 5 percent, the middle rate 10 percent rather than 15 and the highest rate 15 percent, down from 30 percent.

The rates will apply from March 24.