Raising interest rates is not the way to curb inflation, says Central Bank

Governor Gabriel Makhlouf is worried about rising prices but says correction should be left to markets

28th November, 2021
Raising interest rates is not the way to curb inflation, says Central Bank
‘Putting up interest rates today would be exactly the wrong thing to do, because it would hamper the recovery, reduce growth and lead to job losses.’ Gabriel Makhlouf, governor of the Central Bank. Picture: Bloomberg

Raising interest rates to tackle the current spike in inflation would only lead to job losses and reduce economic growth, Gabriel Makhlouf, governor of the Central Bank of Ireland, has said.

Makhlouf said fiscal authorities should have patience and allow markets to correct themselves, despite inflation levels hitting their highest peak in decades. In Ireland, the inflation rate hit 5.1 per cent last month, among the highest for any European member state, marking the first...

Subscribe from just €1 for the first month!

Currency

What's Included

With any subscription you will have access to

  • 971569B3-2C5E-4C45-B798-CEADE16987A8

    Unlimited multi-device access to our iPad, iPhone and Android Apps

  • 099C8662-C57C-42F2-9426-F2F90DF17C8F

    Unlimited access to our eReader library

  • 198AE43B-B9CF-4892-8769-D63C2104BA08

    Exclusive daily insight and opinion seven days a week

  • D8F37B78-25E4-4E4A-A376-4F5789B1564A

    Create alerts to never miss a subject that matters to you

  • B15F2521-37CD-4E02-B898-730A20D39F7F

    Get access to exclusive offers for subscribers on gifts and experiences

  • A564FE02-1AB8-4579-AF9D-BA32A2E5ACA7

    Get content from Business Post, Business Post Magazines, Connected, Tatler and Food & Wine

Related Stories

Dan O’Brien: Our national inferiority complex fuels the move towards angry populism

Aidan Regan: ‘One size fits all’ doesn’t work for Europe’s many varieties of capitalism

Average salary expected to rise 5-10% this year as Great Resignation continues

Analysis: Why the coming months are critical to assessing Europe’s economic direction