The Central Bank of Ireland published remarks by Governor Gabriel Makhlouf delivered at the Atlantic Council during IMF World Bank Week in Washington DC, outlining the economic implications for Ireland of a more fragmented global trade environment and reiterating the approach to monetary policy. Makhlouf noted that Ireland’s analysis suggests 15 per cent tariffs would reduce exports to the United States but would not be prohibitive to trade, with the Central Bank’s latest projections anticipating a slowdown from 2.9 per cent growth this year to just over 2 per cent in the coming years. He highlighted Ireland’s reliance on multiple markets, its position within the European Union’s single market, and argued that further integration into the single market is essential, referencing recommendations made last year by Mario Draghi and Enrico Letta. On monetary policy, he said the disinflationary process is behind the euro area, inflation is “where we want it to be”, and the European economy is showing resilience, while stressing that policymakers are not pre-committing to a particular rate path and will decide policy meeting by meeting based on the data.
Central Bank of Ireland 2025-10-14
Central Bank of Ireland Governor sets out trade-fragmentation risks for Ireland and reiterates ECB data-dependent rate setting
Central Bank of Ireland Governor Gabriel Makhlouf, at the Atlantic Council during IMF World Bank Week, discussed global trade fragmentation's impact on Ireland and monetary policy. He noted 15% tariffs would reduce U.S. exports but not prohibit trade, with growth slowing from 2.9% to just over 2%. Makhlouf emphasized further EU single market integration and stated monetary policy will be data-driven without pre-commitment to a specific rate path.