AIB says downturn talk overstated

Talk of an economic downturn has probably been exaggerated and Irish inflation seems to have peaked, said AIB chairman Mr Lochlann…

Talk of an economic downturn has probably been exaggerated and Irish inflation seems to have peaked, said AIB chairman Mr Lochlann Quinn. Mr Quinn was speaking at AIB's annual general meeting in Dublin today.

He said though the economic outlook was more uncertain than at any time since he took the chairmanship of AIB, talk of a dramatic downturn is "probably overdone".

He also referred to the ESRI's recent GDP forecast of 6.7 per cent this year as "considerable".

"This comes at a time when it seems inflation in Ireland has peaked." Mr Quinn said. He said the bank was not yet seeing any general deterioration of asset quality.

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Mr Quinn also assured shareholders the bank was fully prepared for the changeover to the euro. He described the changeover to the new currency later this year as "one of the most fundamental changes in our lifetime."