The current phase of rising interest rates is not going to end any time soon, according to Central Bank Governor Gabriel Makhlouf.

Last month, the European Central Bank announced a 0.75% rate increase, the latest in a series of hikes, and is expected to announce further increases in the coming months.

"It's not going to end any time soon, but it will end and the important thing is that we get on top of inflation," Mr Makhlouf said.

"The reason interest rates are going up is because inflation needs to be brought down, the ECB's target is 2% over the medium term, we are clearly some way from that," he said.

"If we don't bring inflation under control, the medium-term problems for us will be much much worse and there is really no choice for us but to get to price stability as soon as we can," Mr Makhlouf added.

The Central Bank Governor was speaking to reporters at a financial system conference in Dublin today.

He also said that more needs to be done to help customers of KBC and Ulster Bank as the banks leave the Irish market.

"The banks who are leaving the market, the banks who are inheriting the customers, or likely to inherit the customers, and the community as a whole needs to be doing more to make sure this happens in a smooth way," Mr Makhlouf said.

"We would expect a better level of service for customers switching," he added.

Opening today's conference, Mr Makhlouf called for greater regulation of the non-bank sector which includes investment funds, money market funds and special purpose entities.

"The Central Bank of Ireland is planning to introduce leverage limits for property funds connected to the domestic economy, but we cannot tackle the wider issue alone," the Central Bank boss said.

"Global and European coordination is needed here, and, I suggest, urgently," Mr Makhlouf added.

Finance Minister Paschal Donohoe speaking at today's conference

Over 300 consumer representatives, industry leaders, and international policymakers are gathering in Dublin today and tomorrow to discuss some of the key opportunities and challenges facing the financial system, including consumer protection, climate change, innovation, disruption and regulation.

'Supporting the Economy, Delivering for the Consumer' is the theme of the event and the speakers taking part include the Minister for Finance, Paschal Donohoe, EU Commissioner, Mairead McGuinness and François Villeroy de Galhau, the Governor of Banque de France.

In his address to the conference, Minister for Finance Paschal Donohoe said that the exits of Ulster Bank and KBC highlighted the importance of coordination between all stakeholders in the financial system.

Mr Donohoe said the withdrawal of the two banks from the Irish market is regrettable as it reduces choice for consumers, but it is a business decision for the firms involved.

"But that doesn't mean they just shut up shop and walk away, the whole process is being managed by a host of stakeholders who are coordinating on an ongoing basis," Mr Donohoe said.

The Minister also said that he expects to receive a draft report shortly on a review of the retail banking sector which he announced last year.