Latvia central bank keeps rate steady amid economic recovery

RIGA: Latvia's economy is growing and lending is picking up, the central bank said on Friday as it left all its lending and deposit rates unchanged.

Economic growth in the small nation was 6.8 percent year-on-year in the first quarter, the highest in the European Union.

"In view of the relatively rapid economic growth observed in the last quarters and the gradual improvement in lending, against the background of moderate medium-term risks to price stability, the Council of the Bank of Latvia has assessed the current monetary policy conditions as consistent with the economic situation," the bank said in a statement.

It left its key refinancing rate unchanged at 3.5 percent.