Einar Repse: Macroeconomic stability - a crucial precondition for a successful development  Speech by Mr Einar Repse, Governor of the Bank of Latvia, at the Baltic Business Conference, held in Riga, on 19 May 2000. *  *  *  Ladies and gentlemen!
In an economy with expanding financial sector, interest rate is a key variable that affects firms and individuals across the board. In the pre-liberalisation era, the interest rate was largely “administered” and there was little need for hedging interest rate risk. It must be appreciated that interest rate derivatives market is not a retail market.