Gabrial Makhlouf, Governor of the Central Bank of Ireland, reporting to the Oireachtas Special Committee on Covid-19 Response
Covid-19 Committee, Leinster House, Dublin 2.
On the fiscal impact of Covid-19, Gabrial Makhlouf, Governor of the Central Bank of Ireland said:
“Given the scale of uncertainty surrounding the economic outlook, last week we set out two scenarios: one – our baseline – assumes that the phased easing of the containment measures takes effect as planned; the other – a more severe scenario – assumes the current containment measures remain in place for longer because of a resurgence of the virus.
Under our baseline, consumer spending is projected to rebound in the second half of this year but to decline by 10 per cent for the year as a whole….
…Under the severe scenario, GDP would fall by over 13 per cent this year and output would not recover to its pre-crisis level until 2024.”
Gabriel Makhlouf has confirmed banks are not required under regulatory rules to charge interest on mortgage payment breaks.
This contradicts claims made by the banks in a meeting with the then Taoiseach Leo Varadker.