Central intervention rate unchanged

The Central Bank yesterday left the central intervention rate unchanged at three per cent.

The decision was taken by governor Michael Bonello at the end of the monetary policy advisory council meeting held in the morning.

Mr Bonello noted that since the previous month there had been 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, he added, the latest available indicators related 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 advisory council is due to meet again on February 26.