Latvia cuts to 4%

The Bank of Latvia cut its key rate by a full percentage point on Thursday in a bid to limit the scale of its economic contraction.

The cut leaves the benchmark refinancing rate at 4%.

"The decision was adopted in view of a continued drop in economic activity, diminishing inflation and the weak lending activity," the central bank said. "A reduction in the interest rate would constitute and additional stimulus for encouraging activity in the interbank lats money market and motivate the banks t