Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 85: To ask the Minister for Finance the views expressed by him and colleagues in relation to the recent ECB interest rate rise; his view on whether the rise was helpful to struggling Irish householders; the way he has indicated to Ireland's eurozone partners that any further quarter-point rises will inflict major damage on Irish living standards; and if he will make a statement on the matter. [21715/11]

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 86: To ask the Minister for Finance his views on whether further rate rises by the ECB, up to perhaps 2.5% plus, are sustainable for the Irish economic recovery; and if he will make a statement on the matter. [21716/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 85 and 86 together.

The Deputy will be aware that the ECB's main task is to maintain price stability in the euro-area as a whole. In that context, the ECB cannot take account of the unique positions of individual Member States when considering interest rate changes. I would also stress that responsibility for monetary policy rests with the ECB, which is an independent institution, and that national Governments do not have any role in that decision-making process.

Having said that, I am fully conscious of the burden being placed on mortgage holders by increases in interest rates. This is why returning the economy to growth is so important – once employment starts to increase again it will have a beneficial impact on households' incomes.