Mr. David Duffy:

We do not propose to increase rates by a percentage. In fact, we do not propose to increase them at all. We are cognisant of the consequences and economics. We do not live in a vacuum. Long-term average rates which would give a margin that would allow a bank to return to profitability and create capital would have to be higher than they currently are. That will happen only if the cost of funding changes. As things stand, we are comfortable with our cost of funding and where mortgages stand. There is no 5.5% or perceived wisdom of a number. It is a variable factor based on the cost of funding. If the cost of funding increases, rates increase.