'Era of negative interest rates are over' - Makhlouf

Speaking at an Oireachtas hearing, Central Bank governor, Gabriel Makhlouf said further interest rate hikes were necessary to control inflation

Governor of the Central Bank of Ireland Gabriel Makhlouf arriving at Leinster House ahead of speaking to the Joint Oireachtas Committee on Finance. Photograph: Leah Farrell / RollingNews.ie

Governor of the Central Bank Gabriel Makhlouf has defended the need to increase interest rates, telling the Joint Committee on Finance, Public Expenditure and Reform that raising rates was the primary way to fight inflation, which he said had "eroded living standards."

"Inflation remains far too high and interest rates will have to rise significantly at a steady pace to reach levels sufficiently restrictive. Bringing inflation back to target is essential for the wellbeing of our economy and community," Mr Makhlouf told the hearing.