Central Bank warns against giveaway budget amid concerns over 'sticky inflation'

Bank forecasting exports and the pharmaceutical sector to rebound this year after a contraction in 2023

According to the Central Bank's latest economic bulletin, growth is expected to tepid over the coming years growing by 2% annually as measured by modified domestic demand. Picture: Leah Farrell/Rollingnews.ie

The Central Bank of Ireland is forecasting exports and the pharmaceutical sector to rebound this year after a contraction in 2023 which suggests good news for the exchequer in advance of a general election.

However, despite the potential increased tax take this might bring, the Central Bank has warned against a giveaway budget this year, saying a large increase in current spending could feed domestic pressures and add to inflation.