The Bank of Latvia this week brought its interest rates in line with those at the European Central Bank (ECB) ahead of joining the euro in January – but the drastic rate cut, from 1.50% down to 0.24%, left economists in the country unmoved.
Inflation in Latvia has fallen in recent months to 0.3% in the year to October 2013 – lower even than the 0.7% for the eurozone as a whole, which led the ECB to cut its main policy rate from 0.50% to 0.25% last week.
The Bank of Latvia therefore cut its rates
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