Central Bank firm on budget deficit

The Government must ensure that it meets its budget deficit reduction targets in order to maintain market confidence, according to the Central Bank.

Central Bank head of economic analysis John Flynn declined to comment on whether it was appropriate for the Government to commit to tax cuts for middle-income earners or whether it should stick to the planned €2bn consolidation in October’s budget.

“The Central Bank’s focus is on deficit and debt levels and these are still quite high. It is important that fiscal consolidation stays on track and there is a need for further consolidation,” said Mr Flynn.