Central Bank warns Government that Budget tax hikes may be needed to cool an overheating economy

Economy can’t handle any more stimulus, according to analysisTaoiseach Leo Varadkar had endorsed call by Fine Gael junior ministers in the Irish Independent for €1,000-a-year tax breaks

The Central Bank has warned giveaways could also harm competitiveness. Photo: Bloomberg

Sarah Collins

A budget giveaway risks causing damage to the economy, the Central Bank has warned.