Economist claims Central Bank has 'gone missing in action' amid coronavirus crisis

The Central Bank has come in for some criticism around its handling of the economy amid the Covid-19 pandemic.

The Central Bank has said the reduction in economic output this year will be greater than any year during the financial crisis.

It said the economy could collapse by 25% over the next three months and up to half a million people could lose their jobs.

It has also warned that unemployment is likely to peak at 25% by early summer, but the outlook could get a lot worse if the Government needs to extend the Covid-19 lockdown.

It said public finances could be €19.6bn down this year.

However, economist David McWilliams has said the Central Bank should be a player not a spectator.

Mr McWilliams said: "What riles me a little bit is listening to the Central Bank give their tuppence-ha'penny on the economy without actually standing up and saying 'we are an active part of economic policy and we will do our part'.

"I think the Central Bank has been incredibly unresponsive, they have gone missing in action, in a way."

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