The Central Bank of Malta has left the central intervention rate unchanged at 4.25 per cent.

The Governor considered that conditions in domestic financial markets, particularly in the foreign exchange market, were characterised by continued stability and did not justify a change in the monetary policy stance.

The bank's external reserves fell in October, but this was largely due to the reversal of temporary inflows recorded in September associated with the operations of companies engaged in international business, and the continued, though slower, conversion of Maltese liri into euro.

In its analysis of the latest data, the Monetary Policy Advisory Council observed evidence of sustained activity across a range of economic sectors. This was reflected in a further increase in private sector employment and in a stable, low level of unemployment.

Meanwhile, the continued narrowing of the trade gap contributed to an improvement in the current account position, as did increased tourist expenditure. At the same time, the council noted that food prices had risen further, and reiterated the need to ensure that imported inflation is not reinforced by locally-generated price pressures.

The council will meet again on November 29.