Central Bank rate unchanged

The Central Bank of Malta today left the central intervention rate unchanged at 3.25 per cent.

The Governor took the decision at the end of the Monetary Policy Advisory Council meeting held yesterday morning.

The Governor observed that financial market conditions indicated that, at their current levels, official interest rates provided adequate support to the exchange rate.

The stabilisation in the bank's external reserves, which began in May, was maintained going into July.

Meanwhile, the premium on the Maltese lira narrowed slightly, reflecting stable domestic market yields and a marginal rise in rates in the euro area.

Investor sentiment remained favourable, as shown by the strong response to the issue of government bonds on the primary market, a statement by the Central Bank said.

The Monetary Policy Advisory Council is due to meet on August 25.