asked the Minister for Finance the effect, if any, the decision of the West German Bundesbank to increase its Lombard rate by 1 per cent will have on domestic Irish interest rates and the action he proposes to take in the event of any resulting increase.

A marked upward trend in international interest rates may be reflected in Irish market interest rates generally and, in particular, in the market interest rates paid and charged by the non-associated banks. If the increase by the Bundesbank of 1 per cent in the Lombard rate with effect from 2 May does not set off a marked and sustained upward movement in international rates, and it has not done so to date, it is unlikely to have any significant impact on Irish market rates.

Has it had no effect on the Irish market rates up to the moment?

No, none.