Ireland warns ECB of ‘real life’ impact of interest-rate hikes

Unusual for finance ministers to offer even thinly veiled commentary on monetary policy.

Minister for Finance Michael McGrath urged companies to pass falling expenses onto consumers through price cuts in order to help tame inflation. Picture: Sasko Lazarov

Minister for Finance Michael McGrath said the European Central Bank should be cautious of the impact on firms and households of raising interest rates and called on businesses to play their part in fighting inflation by cutting prices.

“The monetary authorities have very difficult decisions to make in relation to interest-rate policies,” McGrath said as he arrived for a second day of meetings outside Stockholm between finance ministers and ECB officials including President Christine Lagarde.