Taking into account the exchange rates between the currencies in the SDR basket and the fixed exchange ratio between the lats and the SDR basket, the official lats’ rate against the other currencies, including the euro, is also determined every business day.
Countries with lower real interest rates experienced stronger credit growth and housing booms, which placed further pressure on wages and prices. (Slide 5) Lower real  2  BIS central bankers’ speeches  interest rates also meant that it was easier for governments to borrow, slowing down fiscal consolidation.