Share of households at risk of financial stress to rise by a third, Central Bank warns

Ireland faces the risk of “a severe and prolonged domestic macroeconomic shock"

Central Bank has also moved to increase its so-called Countercyclical Capital Buffer, or the amount it demands that Irish banks set aside.

The economic risks from the cost-of-living crisis and higher interest rates are growing, and more households will likely face financial distress and vulnerable firms will become loss-making, the Central Bank has warned.

In its latest Financial Stability Report, the regulator sets out the threats posed from soaring inflation, slowing or recession-bound global economies, and from the fallout from the hikes in interest rates the European Central Bank and other central banks around the world are employing in their fight against inflation.