During a Monetary Policy Advisory Council meeting held today, the central intervention rate was left unchanged at 3%.
The Governor of the Central Bank of Malta noted that since the previous month there were no developments that would justify a change in the monetary policy stance. The decline in the Bank’s external reserves in November and December was stemmed in January, domestic market interest rates were stable and the premium on the Maltese lira remained virtually unchanged.
Inflation continued to be low. Moreover, the latest available indicators, which relate to money and credit, tourism and the labour market, suggested that economic activity continued to be subdued. On this evidence, the Governor concluded that, at its current level, the central intervention rate provided appropriate support to the exchange rate peg.
The Monetary Policy Advisory Council is due to meet again on 26 February 2004.