Ilmars Rimsevics, governor of the Bank of Latvia, has delivered an upbeat assessment of the Latvian economy following the central bank's latest monetary policy meeting.

Setting out his predictions for 2013, Rimsevics said inflation in Latvia, which slowed to an average of 2.3% in 2012, would remain muted at around 2% throughout the year. He attributed this mainly to the stabilisation of oil and food prices, but said rising income levels might contribute to a slight uptick in inflation towards