Prof. Edward Scicluna, Governor of the Central Bank of Malta, gave his traditional annual address at the Institute of Financial Services Malta's annual dinner.

The Governor stated that the sudden rise in inflationary pressures prompted the European Central Bank (ECB) to withdraw monetary policy accommodation and initiate a steep rate-hiking cycle, raising ECB key policy rates by 4.5 percentage points as of November 2023.

"Monetary conditions are now firmly in restrictive territory", the Governor said, emphasizing the importance of price stability, which preserves purchasing power and rewards productive work. Stable prices are a necessary condition for sustainable and inclusive economic growth.

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