Gabriel Makhlouf: Monetary policy, regulation and inequality - a tale of inter-linkages

Remarks by Mr Gabriel Makhlouf, Governor of the Central Bank of Ireland, at Social Justice Ireland, Dublin, 16 November 2022. 

Central bank speech  | 
17 November 2022

Good afternoon.  It is a pleasure to be here today.  I want to take this opportunity to talk about the Central Bank's mission 'to maintain monetary and financial stability while ensuring that the financial system operates in the best interests of consumers and the wider economy', and the importance of inequality in our considerations. 

The title of my remarks today is 'Monetary policy, regulation and inequality: a tale of inter-linkages'. The use of the word 'inter-linkage' is deliberate, in two senses.

First, although I will talk a good deal about monetary policy and how it both impacts, and is impacted by, inequality, the interaction is wider than just monetary policy. 

I am thinking of our actions in the areas of macroprudential policy, as a means for building resilience to shocks; in providing economic advice to the Government, to promote macroeconomic stability and long-term growth; and in implementing our consumer protection framework which aims to ensure that the best interest of consumers of financial services are protected. These are all germane to inequality and today I will highlight some of our work in these areas in the context of the current levels of inflation that we are experiencing.