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Bank chief pins faith on Budget

CENTRAL BANK governor Patrick Honohan has dismissed severely negative outlooks for the economy and predicted that Ireland's borrowing costs would fall from "crisis" levels if the Government implemented its strict Budget plan.

Mr Honohan, right, speaking at the International Financial Services Summit 2010 in Dublin, said any assistance from the International Monetary Fund (IMF) would not differ from the tough economic stance taken by the Government.

He also said Ireland's low corporation tax rate of 12.5pc would unlikely be a matter of interest to the IMF, as its aim is to get economies growing again so they can repay their loans quickly.