Central Bank Monthly Bulletin, Oct. 2003 Highlights three factors that should be targeted by domestic policy: The need for innovation within indigenous businesses, The excess capacity within the ICT sector, The need for competitiveness. “Since the inception of Economic and Monetary Union at the beginning of 1999, Ireland’s inflation rate has, on average, been more than twice that of the euro area” Sites the housing market as an area of particular concern.

“The current historically low level of interest rates, coupled with the higher inflation rate, is increasing the momentum of house prices… and pose(s) macroeconomic as well as financial stability risks” “Rising house prices have substantial potential to contribute to wage pressures as even relatively well-paid workers find it increasingly difficult to gain a foothold on the housing ladder” “It is important that borrowers do not assume excessive debt and that lenders maintain prudent lending standards” To the extent that there may be overvaluation present, a continued rise in house prices could be followed by quite a disruptive adjustment as prices revert to their fundamental values.

R.T.E. 02/10/03 - Central Bank calls for probe into site costs. 03/10/03 - Oireachtas looking at building land cap. The Irish Times.