The Government may have to make further interventions to help households cope with the cost of living, Minister for Finance Michael McGrath has said.

He said he expects that any announcements about potential changes will be made in the next two weeks.

Speaking on RTÉ's Today with Claire Byrne, Minister McGrath said the economy is in good health and the Government will make judgement calls on what steps it should take next.

He said the Government needs to be flexible and agile in its response, but is in a position where it can make interventions.

He said a range of other measures, such as cutting the VAT on gas and electricity bills, have also been implemented, along with a reduction in the excise on petrol and diesel.

Other budget measures aimed at helping households have also come into effect this year, he added.

Mr McGrath said his sense is that many people are feeling real pressure and dealing with huge bills this month, and while the energy credit was a help, he acknowledged that it "did not go all the way" for many households.

He said there is some merit to the idea of introducing a 30% tax band but that it carries considerable cost.

Work on this is continuing and final decisions will be made later this year, he said.

Minister McGrath also said there are no plans to introduce mortgage interest relief despite a continuous rise in interest rates, but everything is being kept under review.

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He said he is conscious that changes since July have been "rapid" and represent a "big shock" to the finances of hundreds of thousands of home owners.

He said many are locked into fixed rates and are not impacted immediately but tracker mortgage holders are impacted as soon as an announcement is made by the ECB.

The minister said while there have not been changes in variable rates by banks, he would expect such changes shortly.

He also raised concerns for those with mortgages with non bank lenders as they have a "different funding mix" and some are paying around 7%.

Mr McGrath said he is engaging with the Central Bank on the issue and has asked them their views on it and whether they need any additional powers.

He said there needs to be forbearance as people paying 7% and possibly more will inevitably come under "real pressure."

Minister McGrath said the level of mortgage arrears has fallen consistently since 2010 and it is now the lowest in over a decade.