Seanad debates

Thursday, 27 March 2003

Central Bank and Financial Services Authority of Ireland Bill 2002: Second Stage.

 

I wish to refer to the Central Bank's report, which was issued yesterday. There were a number of demands on the Order of Business that certain matters covered in the report should be debated. This is one of the opportunities to do so. What the report has to say about inflation is particularly significant. There have been some suggestions that inflation is rising and if one takes the figure for last month in isolation, that is true. However, inflation is on a downward trend and that is confirmed in the report. In that context, the report cites significantly reduced pay increases, indications of pay restraint in sectors facing competitive pressures, weaker demand and falling rents and states that income growth has been subdued. It is also stated in the report that there are signs that inflation is easing.

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