Oireachtas Joint and Select Committees
Thursday, 8 October 2020
Committee on Budgetary Oversight
Pre-Budget Engagement: Minister for Public Expenditure and Reform
Michael McGrath (Cork South Central, Fianna Fail)
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It is a different system. The banking system sets its interest rates based on a range of factors, including borrowing costs on the interbank and wholesale markets. They are factors. There are other considerations, such as the cost of capital and so on. These issues would not be relevant to the factors that decide the cost of sovereign borrowing. There are differences, but there is some relationship.