The Governor of the Central Bank has warned that the Government needs to think very carefully about what affect policy proposals could have on inflation as it begins to frame October's budget. Gabriel Makhlouf said if Government policy choices fuel demand at a time when the European Central Bank is trying to slow it down, it just means that monetary policy is going to have to work harder. "So I think the decisions that are made on the budget, apart from the usual concern about debt sustainability, about not relying on surprise corporation tax increases to fund regular recurring spending, I think it's also very ... (full story)