Austin Hughes: Overkill by central banks could pose serious problems for many households and businesses

The key concern for central bankers is that the inflation shock of the past year becomes baked into lasting high global inflation.

This year has proved a far more challenging year than might have been expected, however, the Irish economy has risen to the challenges and is finishing the year in a much better condition than most had predicted.

This is not to say the past 12 months have not been very challenging for most households and firms. Runaway inflation, rising interest rates, and the range of problems afflicting the housing market have weighed on sentiment and spending power. Consumer and business confidence have also been hard hit by the seismic impact on global conditions of Russia’s invasion of Ukraine, and the more localised effects of recurrent sea changes in British policy-setting.