The growth in demand for credit fell below 25 per cent last month for the first time since August 2004.
Figures published yesterday by the Central Bank showed the annual rate of growth of private sector credit slowed to 24.8 per cent in February from 25.3 per cent the previous month.
The figure continues a downward trend that began last June, when demand for borrowings was running at over 30 per cent year-on-year.
While growth in borrowing is expected to continue to fall in the coming months, analysts expect Irish figures to remain well ahead of the euro-zone average.
The Central Bank noted that, although annual growth slowed, an additional €5 billion in credit was outstanding at the end of February compared with the previous month, bringing the total amount owed by the private sector to €326 billion.
Financial institutions were more active in the non-mortgage market, which saw annualised growth of 30.8 per cent last month, virtually unchanged from the January figure of 30.9 per cent.
Growth in mortgage lending was down for the seventh month in a row, easing to 24.6 per cent from 25 per cent in January. The bank noted that the more accurate three-month moving average showed residential mortgage lending was now at its lowest level since November 2003.
The bank noted that mortgage lending was generally weaker at the start of the year. "The month on month change in residential mortgage lending in February has been below the January level in four out of the last 10 years," it said in a statement, adding that it was still "too early to determine the extent to which this slowdown can be attributed to higher interest rates and/or declining activity in the housing market".
Credit card borrowings were 18.6 per cent higher than the same time last year, compared to an annual growth rate of 17.9 per cent in January.
Actual spending on credit cards was down on the previous month, but the amount paid off cards fell by an even greater amount.
Alan McQuaid, economist with Bloxham stockbrokers, said Irish borrowers were still chasing credit "freely", despite recent interest rate rises. The 24.8 per cent growth in credit here compares with a figure of 10.7 for the euro zone as a whole.
