asked the Minister for Finance if he will comment on recent suggestions in the financial press that interest rates in Ireland are once more aligned with interest rates in London as a matter of official policy; and if he will outline the Government's policy for bringing interest rates down towards the rate of inflation.
Ceisteanna—Questions. Oral Answers. - Interest Rates.
15.
Our interest rates are not aligned with UK interest rates as a matter of policy. As the Deputy will have noted, interest rates here, having been significantly above those in the UK in recent years, have now fallen to a level where our interbank rates are about 1 per cent below their UK equivalents.
Interest rate policy is primarily a matter for the Central Bank. While not being tied to rates in any particular country, policy must take account of the general international level and trend of interest rates. However, the recent further encouraging fall in the rate of domestic inflation, as well as the improvement in the balance of payments, the stability of the exchange rate in the EMS and the Government's commitment to correcting the imbalances in the public finances, should all help in creating scope for further declines in our interest rates.