The old rules no longer apply. Throw out the NAIRU. Heck, throw out supply and demand. No limits, no business cycles. All right, this is a bit of an exaggeration, but you get the point that I am not especially partial to the broader interpretation of the new economy concept!
If the situation remains unchanged at the moment when the lats is re-pegged to the euro at the end of 2004 and beginning of 2005, then the lats interbank rate will also remain closer to the lower limit of the new fluctuation band around the fixed lats exchange rate against the euro.