Central Bank head Makhlouf rejects claim that Irish banking market is 'dysfunctional'

Speaking to the 'Irish Examiner', Gabriel Makhlouf discusses the timing of rate rises and cuts, competition in Irish banking, the danger of stoking up inflation, and factors behind Ireland's housing shortage

The Oireachtas had taken away some of the powers of the Central Bank in the past. Picture: David Creedon

Central Bank governor Gabriel Makhlouf has said he is “completely open-minded” on the path of interest rates, but that financial markets for the past while “have been running away with themselves”, regarding the prospects of an early cut by the European Central Bank.

The comments of central bankers are being closely monitored amid global market bets that the European Central Bank (ECB) is poised to declare a victory over inflation, by sanctioning its first cut since it started aggressively hiking rates 18 months ago.