Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is important to put on record that AIB has led the way in rate reductions. It is interesting that when one looks back over the past number of years - one of the tables in the questionnaire is quite useful - one can see that in June 2013, the variable interest rate for loan to value between 50% and 80% was 4.29%. It is now 2.95%. Similarly, for lower loan to value of less than 50%, it was 4.09% but is now 2.75% so there has been a reduction of more than 130 basis points, which is very welcome. The recent announcement of the improvement in AIB's fixed rate offers is also very welcome. It is fair to say it surprised some analysts, who were predicting that the movement would be in an upward direction. Will Dr. Hunt explain the thinking in this regard? Has there been a change in focus? AIB has always prioritised variable rates but it is now becoming more competitive in the fixed rate market. Is that because customers are showing a preference for fixed rates and AIB wants to be competitive in that space?