Professor Philip Lane:

We have a system whereby the credit environment can only have a limited impact. I repeat the point that a limit of three and a half times income is a fairly severe by international standards, especially in a low interest rate world. For that to be the limit on a mortgage is a severe restriction. In a European context, the 90% deposit limit is significant for first-time buyers.

We have put in rules. I will go back to what Senator O'Donnell asked me.

If we see, according to our modelling, that house prices are going above what we think is a reasonable zone, then we will intervene.