Is it simply the sovereign borrowing requirement? As in, the NTMA need to borrow to finance a government deficit and so they push up interest rates on state savings products to help do this? Is this what has happened historically?
What would happen if the state ran a budget surplus over an extended period? Would state savings products just become less attractive or do the NTMA try to tie their rates to other market rates somehow?
What would happen if the state ran a budget surplus over an extended period? Would state savings products just become less attractive or do the NTMA try to tie their rates to other market rates somehow?