Introduction

On 1 January 2008, Malta officially adopted the euro as its national currency and the Central Bank of Malta became a member of the Eurosystem, which comprises the European Central Bank (ECB) and the national central banks of the EU Member States that have adopted the euro. The Eurosystem is responsible for formulating and implementing the single monetary policy for the euro area. As a member of the Eurosystem, the Bank’s primary objective is the maintenance of price stability. Price stability is widely seen as the proper goal of monetary policy, essential to encourage sustainable economic growth and a high level of employment.

The Eurosystem has defined price stability as annual price increases in the euro area of below, but close to, 2%, over the medium term. In pursuing its monetary policy strategy, the Governing Council of the ECB analyses economic and monetary developments to assess risks to price stability and arrive at policy decisions.

The Bank contributes to the achievement of price stability in the euro area through participation by the Governor in the Governing Council. The Bank is also responsible for the implementation in Malta of the Governing Council’s monetary policy decisions using a range of monetary policy instruments.

In this section one may find further information on collateral management and on decisions taken by the Governing Council.


The ECB's monetary policy strategy

L-istrategija tal-politika monetarja tal-BCE