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FURTHER CUTS TO interest rates and energy prices are on the cards, according to Finance Minister Michael McGrath.
Speaking to reporters at the National Economic Dialogue in Dublin Castle today, the minister said Ireland’s inflation rate is one of the lowest in the Euro area, running at around 2%.
“We are likely to be at a turning point in the interest rate cycle. We expect further energy price reductions to be passed through the wholesale level to the retail level. We will see an improvement in living standards for many people.
“The vast majority of households in Ireland will see gains in real terms across 2024. So that’s very positive,” he said.
His comments come as RTE reports the chief economist of the European Central Bank Philip Lane has indicated that the ECB should be in a position to begin cutting interest rates from next week.
McGrath said there is still a need to be careful in the decisions government makes over the next year, due to the “deep uncertainty” surrounding geopolitical tensions.
Speaking about the budget this year, the minister said there will be measures to support households with the cost of living. He said there will be a social welfare package and income tax cuts.
He said there should be a move away from one-off cost-of-living measures, given the fall in inflation, and a move towards permanent measures and permanent changes to taxation frameworks.
While there has been speculation of the budget being brought forward, perhaps in time for an autumn election, McGrath said today that the budget will be at normal time in October.
The minister said in the coming weeks he will bring a memorandum to the government to confirm the date of the budget, stating: “There are no plans to change the budget date from normal periods.”
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They take credit when interest rates and energy prices decrease but when they increase, they blame outside influences such as wars and pandemics.
@Bryan: I’m no fan of this guy but how is he taking credit?
Maybe that’s just how you are reading it.
@Bryan: Same as the Housing Crisis Bryan, FFG caused/mismanaged/ignore it but we all know its the biggest issue on the doorsteps leading up to the next General Election. MM spoofed 4 years ago that FF would build 50k new homes per year and what do we get? A deficit of 250,000 homes despite them knowing a decade ago that our population is rising at a rapid pace.
@Mr Inbetween: “Caused” would be the word I would choose from those three.
It is the biggest issue, partly because it affects a huge amount of people in a very deep way, directly and indirectly, and partly because the negative long term effects will be huge, when this mess has finally run it’s course.
Considering that why would you then put up no resistance to mass inward migration which obviously and heavily makes your 20 year old housing crisis, and strategy to address it, even worse.
Why would you then also actively support inward migration for the same reason.
Why too, support migration, when you have already 13,000 local homeless people, hundreds of people still there from the Direct Provision system, tens of thousands of Ukrainians and other existing asylum seekers, all in emergency accommodation hotels, BnBs and other facilities and all on full board, with the associated costs, financially and socially, for the same reason.
Why would you also beat down the public when the majority are opposed to mass inward migration for the same exact reason, and at the same time widening an already very large rift between citizens and the police. The same police will ultimately have to clean up the societal breakdown the gov is creating.
And finally, with all that in mind, why would you NOT take the EU Migration Pact OPT-OUT clause, that the electorate won, for the nation, in the rejection of Lisbon 1 treaty and at least give your country the chance to make its own decisions that are appropriate for Ireland. Denmark is only other country with the opt-out and they have used it. Many other countries would love the same option, so are we going to waste this opportunity? If we opt-in, we are in for good, and nothing suggests to me it will end well. If we opt-in and when we can’t take anymore asylum seekers because we have hit rock bottom on the accommodation and costs fronts we will have to pay for every asylum seeker we reject and still deal with the mess that they have gotten us too.
If and when it gets to that point your Michael Martins and your Harris’s, and Varadkars will be long gone, enjoying the good life with gold plated pensions and police security on the gate.
@Paddy Short: Great post Paddy, nobody can answer the basic question as to where we will house all the people arriving. Helen Mc Entee has numerous Citizenship ceremonies every year for thousands of these people, they will need housing. So the situation is going to get even worse, the same with schools, hospitals, GP’s, where are these services going to come from. No point saying we are a wealthy country, that’s BS. The Far Left saying not to be blaming Immigration, it’s the Govt’s fault & yes it is, but it’s totally unsustainable to bring in hundreds of thousands more to add to the situation, as nothing gets solved, it gets worse. Ireland is breaking down fast & becoming very divided, it doesn’t augur well for the future.
@SV3tN8M4: Thanks John
Elections must be on!!!.
The old magic money tree has sprung up in the garden again! The average fianna gael voter is thick enough to fall for this, just before the elections! That’s why we can’t have nice things.
Heard paschal donoghue on with matt Cooper earlier, it was like a party political broadcast on behalf of his buddy. I don’t think Matt asked him a serious question throughout the 15 mins. I thought at one stage coopers microphone was broke, but no, he was just letting his buddy have a clear run at it.
@Michael o connor: Donohue is one of very few politicians who are actually qualified for the role. He did a great job as finance minister for two terms.
@honey badger: Wonder if he was a palestine sympathiser would ya be so gleeful with praise
The sad part of all the ffg kite flying is it will keep their deluded followers voting for them
Increase the tax bands in line with inflation. 50k min for higher rate. Increase all the static tax thresholds by at least 20%. Get rid of USC. Massive income tax & Vat hauls the past few years….. Tax is killing any little pay increases we get while the govt purse and departmental budgets swell!!!!…. And I’m not even factoring in corp tax…. Inflation and taxes is the hidden killer to disposable income
He has no influence over energy prices or interest rates. Why is he taking credit?
Vote for me!, money money money,…but your time is up
What I’d like to know is why haven’t any of the supermarkets went down in price for anything,the food shopping is getting dearer by the week,and that’s what most people r saying,they have these so called price drops,but adding extra on too other products,or Dunnes spend x amount to get money off your bill,but your paying extra for what your buying..where was the money that the electric companies were to pay us 2 years ago,the government gave once off esb payments but that was the working people paying that.who do the government think their fooling,there’s not 1 part of the public service that’s not broken,they can’t fix anything,even though there’s billions been made,We need to stop this madness that the EU has control of so much.in 2 weeks,people vote by the neglect they have suffered
@Kathleen Peters: Yep, and this bottle return thing was used to hide another rise in drinks also. I see prices went up more than 25 cents on most bottles. Also, on non returnable bottle drinks. Where are our price regulators that are getting paid with our taxes?
While this can be good, to me it smacks of a blatant vote catching exercise.
We need to be nice to the Israelis or all the tech companies are going to walk according to the Israeli Ambassador..
Budget kits flying and its still only May!
Interesting that on the eve of Elections, Michael Mc Garth comes out with this. Where was he when families were struggling over the last 3 years. Too late now & will take months to come in, unlike the overnight price rises the Govt & their Cartels carry out. Pure electioneering & empty rhetoric. He lost credibility with working Irish people a long time ago, he had massive budget surpluses, yet he & the CRU allowed the exploitation of ordinary households by Energy companies making record profits, giving big business reduced prices but not households. Banks allowed to continue to make massive profits on the increased Interest rates, even though inflation is down for months. But then he & Paschal are working for vested interests & not Irish workers.
@SV3tN8M4: Mc Grath.
more bull for the election they dont give a f about you
@john mac: Succinctly put! +1
I honestly haven’t noticed the drop in energy prices.
Not happening, end of.
Is there an election soon?
Of course there are cuts in taxes . There are elections coming next year. And the bribery starts.
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