Mr. John McCarthy:

I am subject to correction, but I think the market in tracker mortgages is about 50%. However, I am not an expert in that area. The Senator is right about the reduction in interest rates having a favourable impact on a large part of the household sector by boosting their disposable income and that is feeding through into consumption. There is another channel through which it is having a positive impact. The reduction in interest rates and the unconventional measures now being seen - the purchase of private sector assets, asset-backed securities, covered bonds and so forth - are increasing the money supply and leading to a depreciation of the euro exchange rate. That will have an impact on the exporting side of the economy. There is a more positive impact on the real economy from the accommodative monetary policy stance that is being adopted by the ECB.