The Government is being urged not to hit people's pockets hard in Budget 2014 in order to improve confidence in the economy.
The latest KBC consumer sentiment monitor shows a slight rise in confidence but that people remain cautious in relation to their finances and spending.
The bank says that the cut in the ECB interest rates and low Irish inflation has helped produce a more positive sentiment this month.
Austin Hughes, Chief Economist with KBC Bank says while there are some positive signs people are still are not spending money
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