The growth in private sector credit continued in October and is now running at an annual rate of 29.4 per cent, according to the Central Bank.
The monthly credit statistics published today show that financial institutions extended €5.6 billion of credit in October, with non-mortgage credit accounting for about two thirds of this increase.
Non mortgage credit such as short term loans and overdrafts rose by nearly 30 per cent in October, outstripping overall demand for the second month running.
The central bank has warned consumers against using credit to fund their day-to-day spending as borrowing costs are expected to rise in the coming months.
Demand for housing finance remained strong in October with residential mortgages grew by a further €1.8 billion. This is lower than the €2 billion increase recorded in September, but is the fourth highest monthly increase on record.
The six-month moving average of monthly changes in residential mortgages reached its highest ever level in October at €1.9 billion.
Market interest rates rose during October, with the 3-month rate rising by 8 basis points and the longer-term 12-month rate increasing by a significant 23 basis points.
Special Savings Incentive Account (SSIA) balances with credit institutions rose by €175 million to €6.4 billion at the end of October.