Michael McGrath (Cork South Central, Fianna Fail)
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The Central Bank's 2015 report entitled Influences on Standard Variable Mortgage Pricing in Ireland sets out all of the factors that feed into the rate that is charged to the borrower. Taking all of that into account, is it the view of the Central Bank that variable rate mortgages in Ireland are appropriately priced, in particular the cost of funds, capital and risk of default?

I accept that it is not a function of the bank to have a view on whether they are appropriately priced. However, does it have a view in that regard and where does the bank see them going? As I said, there has been some progress in terms of an increase in product offerings and reductions in rates but does the Central Bank believe the current rates are appropriate?