Slower growth and higher inflation could 'test borrowers'

Central Bank of Ireland warns of mounting risks to the economy and financial system

Governor of the Central Bank of Ireland Gabriel Makhlouf. 

A combination of weaker growth along with increasing inflation could “test borrower resilience” over the coming months, the Central Bank of Ireland has said, as it warned there are multiple risks developing that could impact the economy and financial system.

In its latest financial stability review, the Central Bank said if the conflict in the Middle East “intensifies or continues for longer” it would push up inflation, slow economic growth and increase costs for Irish households and businesses.