Before I turn to this, however, I would like to say a few words about the current risk environment. Challenging and uncertain times We published our first Financial Stability Review of 20232 last Wednesday, amidst what feels like particularly challenging and uncertain times. High inflation persists, and is eroding real incomes. Interest rates have risen rapidly – and may stay elevated for longer.
Global growth has slowed, and is subject to significant downside risks. And as recent market turbulence has shown, vulnerabilities remain in the global financial system. In the face such challenges the Irish economy and financial sector has so far proven itself resilient. Household incomes and employment remain a key source of strength.