Central Bank governor warns on rapid growth

Central Bank governor Philip Lane issued a warning to the Government about the potential damage to the economy if strong economic growth extends over the next few years.

In the annual pre-budget letter to the finance minister, he told Paschal Donohoe the Government may need to prepare for tax increases to cool an overheating economy.

Talking to reporters, and in public comments he made at a gathering of economists, the governor made clear his message was not directed at next month’s budget.