Continuing pressures have characterised the term money markets globally, including the US dollar, euro and pound sterling money markets (as shown by the chart on the right of slide 7). A main reason for this is the persistence of uncertainties surrounding the financial positions and liquidity needs of financial institutions.
The challenges in relation to fiscal sustainability were set out in very clear terms in the recent Report of the Commission on Taxation and Welfare. It highlighted that given Ireland’s demographic profile, our level of public debt, the need to meet our climate targets and other fiscal risks, the total amount of taxation required to fund public services will increase in the years ahead.