Acting Governor of the Central Bank of Ireland, Sharon Donnery, discussed the current economic outlook yesterday at the MacGill Summer School in Glenties, Co Donegal.
Donnery warned that the economy needs to be resilient to the risks associated with strong domestic growth as well as external threats. She further stated that strong domestic economic performance points to an increased risk of an overheating economy and prudent management of the economy is needed.
Discussing the preparation for the risks associated with Brexit, Donnery said a no-deal Brexit would likely bring considerable volatility to financial markets, with heightened stress and a potentially large depreciation of Sterling.
Donnery warned, "Through our preparations over the last three years we have more specifically strengthened resilience to Brexit. Today the main outstanding source of risk to financial stability stems from a worse than expected macroeconomic shock."