Central Bank governor warns Govt not to go overboard with cost of living measures

Central Bank governor Gabriel Makhlouf said the need to be targeted so as not to worsen inflation

Central Bank governor Gabriel Makhlouf also said the Ukraine crisis probably won’t keep the ECB from agreeing on a faster wind-down of asset purchases at its next policy meeting.

Government moves to ease increases in the cost of living must be “targeted” because of their potential impact on inflation, Central Bank governor Gabriel Makhlouf has warned.

“Those sort of support packages have their place, but they need to be targeted because the distributional impact of inflation is not neutral,” Mr Makhlouf said.