Economy

Income erosion and high interest rates pose risk to ‘resilient’ Irish economy - Central Bank

Rising interest rates have already had immediate effects on the commercial real estate market, and appear to be slowing the housing market in recent months, regulator warns

“The Irish public finances entered this period from a position of strength but the concentration of corporate tax receipts among a small number of large companies continues to necessitate prudent fiscal planning,” the Central Bank warned today. Picture: RollingNews.ie

The effect of high interest rates, the erosion of real incomes, and slowing economic activity all pose a threat to continued growth in the Irish economy, the Central Bank warned on Wednesday.

In its latest financial stability review, the regulator said that while activity in the Republic had improved since November due to lower energy prices and a resilient domestic economy, there remains a “high degree of uncertainty” over the coming months.

Global markets remain ...