Central Bank governor casts doubt on early rate cut

Central Bank governor Gabriel Makhlouf warned Ireland’s small export-led open economy is more exposed than others to negative external shocks arising from reduced global trade integration

Central Bank governor Gabriel Makhlouf said other factors could fuel inflation further if they are not managed appropriately. The include investing in housing and climate priorities. Picture: David Creedon

Central Bank governor Gabriel Makhlouf said the European Central Bank (ECB) governing council should remain “open-minded” about the path of interest rates, but suggested it would maintain rate levels for a “sufficiently” long time.

Mr Makhlouf said tighter financing conditions are “dampening demand”, which helping to push down inflation.