To what extent is monetary policy influenced by uncertainty in Malta?

Abstract

The primary objective of this dissertation was to provide an understanding of how the Central Bank of Malta reacts to the prevailing uncertainty by shifting the Intervention Rate with a gradual movement and with a delay. This was achieved by a comparison between the stance adopted by the local Central Bank under uncertain conditions to move Official Rates, with that stated in the theory. Consequently, a thorough analysis of literature was needed and thus carried out. After that, a study of the Monetary Policy Interventions used in Malta throughout the last ten years was undertaken in order to come up with the findings.