September Governor of the Central Bank of Ireland delivers address at University of Galway

Gabriel Makhlouf, Governor of the Central Bank of Ireland, today delivered an address focusing on inflation and the labour market as part of University of Galway’s Thinking Beyond series.

Organised by the University’s J.E. Cairnes School of Business and Economics, the event took place in the Aula Maxima, Quadrangle Building.

The event offered the opportunity to provide valuable insights into the causes of the current period high inflation in Ireland and what it means for monetary policy. Following Governor Makhlouf’s address, a Q&A session was held with Alan Ahearne, Professor of Economics at University of Galway and Adviser to the Tánaiste and Minister for Foreign Affairs Micheál Martin.

Gabriel Makhlouf was appointed Governor of the Central Bank of Ireland in 2019, and is Chair of the Central Bank Commission, a member of the Governing Council of the European Central Bank, the European Systemic Risk Board, and is Ireland's Alternate Governor at the International Monetary Fund.

Prior to joining the Central Bank, he was Secretary to the New Zealand Treasury and the NZ Government's chief economic and financial adviser. Mr Makhlouf also led reviews of New Zealand's three macroeconomic pillars (monetary, financial stability and fiscal policy) and the development of a new framework for the development of economic and public policy focused on intergenerational wellbeing. In addition, Governor Makhlouf was New Zealand's Alternate Governor at the World Bank, Asian Infrastructure Investment Bank, Asian Development Bank and the European Bank for Reconstruction and Development. He was also co-chair of the Trans-Tasman Banking Council.

Professor Alan Ahearne said: “The Irish economy is operating at full employment, with the unemployment rate having dropped to record lows and many businesses reporting shortages of labour. Against this backdrop, I very much look forward to the Governor’s perspective on how developments in the labour market might affect the outlook for inflation, the cost of living and the future path of interest rates.”

Governor Makhlouf also addressed students of University of Galway’s Economics Society during his visit. 

Governor Makhlouf said he welcomed the opportunity to visit University of Galway as part of the University’s Thinking Beyond: “It is always a pleasure to meet with students and discuss these important issues, and I look forward to welcoming some of them as colleagues in the future.

“If I were to sum up post-pandemic labour market dynamics in one word, it would be resilient. The slowdown in growth this year has yet to show up in employment levels, with wage growth continuing to be strong, reflecting the combined effects of a tight labour market and catch up to inflation. We will continue to closely monitor wage developments as a potential source of future inflation. The outlook for wage growth will depend in large part on how labour demand develops. Forward-looking indicators indicate that some of the strong momentum we saw during 2022/23 may begin to ease in the coming months.”  

Professor Alma McCarthy, Dean of J.E. Cairnes School of Business and Economics said: “We are delighted to host Governor Makhlouf as part of our Thinking Beyond event series in the School. The series features insights from thought leaders on current issues impacting business and society across a broad array of industries and sectors.”

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