Dr. Mark Cassidy:

On the shared equity scheme, I would not describe what we have provided as a critique. We provided an assessment to the Joint Committee on Housing, Local Government and Heritage in which we examined the shared equity scheme under a number of headings relating to our mandate for financial stability, our mandate for consumer protection and broader dynamics in the market. As for the third heading, which related to pricing and affordability, our assessment was that the main problem in the market relates to a lack of supply, about which I think there is a general consensus. We think the main effect of the shared equity scheme may be on demand and that while that may have some effect on supply, the effect may not be too great because there seems to be some sluggishness in how supply responds to demand.

We cannot yet provide an assessment regarding how great any impact on prices might be because we do not yet have enough information regarding the design of these measures. We would need information on who the measures could apply to, whether there would be particular thresholds or caps on the measures and whether they would apply to certain cohorts. Until we have more details, we will not be able to provide any quantification on supply.

Whether house prices should be taken into consideration in the assessment of price stability is a very topical, important and relevant issue. The Central Bank of Ireland, of course, is part of the euro system and we contribute to its monetary policy. The ECB is currently undertaking a fundamental review of its monetary policy strategy. It will be a very comprehensive review of many different areas. One key element will examine whether owner-occupied housing should be included in the measurement of the price basket when ECB takes decisions regarding price stability. It is too early to say what the outcome will be in that respect - the findings are expected to be announced during the second half of this year - but the issue is under active consideration as part of that stability review.