Áine Brady (Kildare North, Fianna Fail)
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Question 184: To ask the Minister for Finance the positive effects of the recent drop in interest rates on the Irish economy; and if he will make a statement on the matter. [42400/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As part of a coordinated move with other central banks, the European Central Bank reduced its policy interest rates by 50 basis points on 8th October 2008. The ECB cut rates by another 50 basis points at its Governing Council meeting on 6th November. These interest rate cuts should have a positive impact upon the Irish economy if fully passed on at the retail level. The main channel is through a reduction in the repayment burden for the servicing of existing debt by households and businesses, thereby boosting real disposable incomes.