Saturday 19 August 2017

Wanting it both ways on pay and mortgages

Central Bank chief economist Gabriel Fagan
Central Bank chief economist Gabriel Fagan
Editorial

Editorial

Higher wages will undermine gains in the country's competitiveness made since the crash, the Central Bank warns. At the launch of the bank's overview of the economy, its chief economist, Gabriel Fagan, said pressure for higher pay was only natural. However, there was a need to avoid "overshooting" when it comes to pay demands, he said.

In the next breath, Mr Fagan claimed the Central Bank's mortgage lending rules could be tightened even further.

A review to see how well those rules are meeting their original purpose is due later this year.

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