John Perry
Question:60 Mr. Perry asked the Minister for Finance the implications, if any, of current domestic interest rates for macro-economic policy; and if he will make a statement on the matter. [19636/97]
Written Answers. - Economic Policy.
The setting of interest rates is a matter for the Central Bank, which is independent in its implementation of monetary policy and I am not going to make any comment in that regard.
We are now enjoying a sustained period of unprecedentedly high economic growth rates. There are a number of macroeconomic policy implications to be drawn from this. In periods of strong growth, such as we are experiencing at present, it is appropriate that the Government finances should move into balance if not into surplus. It is the Government's policy that Exchequer borrowing should be eliminated over the next two to three years if current conditions continue.
The Government's tight fiscal policy stance, with the provisions of Partnership 2000, will help to ensure that the right conditions for economic growth are sustained. It is essential for the maintenance of our current strong performance that all sides adhere to the provisions of Partnership 2000. The wage moderation embodied in this agreement and its predecessors has been an important factor in our overall economic performance over the past decade including the rapid increase in employment in recent years.