At the end of October, the overnight RIGIBOR rose to 4.0%, while the six-month RIGIBOR, to which interest rates on lats loans to domestic enterprises and private persons are usually fixed, dropped to 4.2%, promoting further decreases in interest rates on lats loans.
Falling money market rates and escalating bank competition fostered a decline in interest rates on lats transactions by domestic enterprises and private persons. In September, interest rates on loans in lats fell to a record low. The weighted average interest rate of short-term loans in lats dropped to 6.52%, below that of short-term loans in the OECD currencies, which was at 7.89%.