Irish central bank warns economy may be overheating

The Central Bank of Ireland
The Central Bank of Ireland
William Murphy

The Central Bank of Ireland has cautioned the country’s government not to let public debt grow further, as the economy runs close to full capacity. 

In its third quarterly bulletin of the year, the CBI forecast that Ireland’s domestic demand would grow at 4.4% in 2018 and 4.1% in 2019. “As the economy gets closer to full employment,” the bulletin says, policymakers need to examine whether the economy’s cyclical strength may “give rise to overheating dynamics”.

The bulletin concedes that

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