The Deputy Governor of the Central Bank of Ireland, Sharon Donnery, today addressed the Global Interdependence Center Central Banking Series in Dublin on the theme ‘The Outlook for the Irish Economy’.
The Deputy Governor addressed the current challenges presented by economic statistical data, the Irish economy during a period of accommodative ECB monetary policy and the potential impact of Brexit.
On the banking sector, Donnery said that although the pass-through of reductions in policy interest rates is evident at the euro area aggregate level, lending rates continue to be higher in Ireland with mortgage rates and SME interest rates comparatively higher.
Furthermore, the Deputy Governor believes that the outlook for the economy is complicated by the outcome of the Brexit referendum in the UK.
"The economic impact of Brexit on Ireland is difficult to estimate with any precision. It is clear, however, that the impact will be negative and material, both in the short-term and in the longer term. The long-run economic impact of Brexit on Ireland will be influenced by the nature of the withdrawal agreement between the EU and the UK and the subsequent evolution of both economies," she said.
Source: www.businessworld.ie
