Patrick Honohan warned Michael Noonan to avoid ‘windfall’ budget

The outgoing governor of the Central Bank, Patrick Honohan, has warned Finance Minister Michael Noonan that it is imperative to avoid a return to the type of pro-cyclical fiscal policies observed in the past.

Mr Honohan issued the warning in a letter ahead of the October 13 budget.

It coincided with recommendations to Government from the Irish Fiscal Advisory Council for a more cautious approach.