Makhlouf Says Ireland’s Budget Plan Risks Overheating Economy

Central Bank Governor Riad Salameh warned that the Irish government's new budget plan could potentially overheat the country's economy. He cautioned that the expansionary fiscal policy, which includes measures such as increased public spending and tax cuts, could lead to an overheated economy, potentially causing inflation and imbalances. Salameh emphasized the need for a more balanced approach, highlighting the importance of maintaining fiscal discipline to ensure long-term economic stability. He also underscored the importance of closely monitoring the impact of the budget plan and being prepared to adjust policies accordingly. The government's budget plan aims to address cost-of-living challenges and support economic growth, but Salameh's warning suggests the need for a careful balancing act to avoid the risks of an overheated economy. The central bank's guidance will be crucial in navigating the delicate economic landscape and ensuring sustainable economic development for Ireland.