Oireachtas Joint and Select Committees

Wednesday, 10 November 2021

Committee on Budgetary Oversight

Inflation: Discussion

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail) | Oireachtas source

The interest rate increase was referred to as a tool that might follow a sustained high. What does "sustained high" mean? Are we looking at some time next summer or the year after if we continue at this rate? What sort of sustained high would drive up interest rates?

There have already been wage increases in some sectors, for example, the technology sector where people are working from home and can now compete for jobs in Dublin, Cork, New York or wherever, allowing them to increase their wages. While this is only happening in some sectors, it is happening nonetheless. There is no talking of inflation driving those wage increases. Rather, it is down to the scarcity of labour.

Will one of the witnesses discuss the sustained high?

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