Private-sector credit grew by 26.9 per cent in June, marginally down from the 27 per cent recorded in May and remained "strong and steady" the Central Bank said this morning.
Demand for residential mortgages was exceptionally strong last month, growing by €2.1 billion, the highest monthly rise this year. This brought the Irish rate of residential mortgage lending up to 26.6 per cent, up from 25.9 per cent in May and brings the level back to where it was in December 2004.
The back noted that this increase happened despite the price of an average house moderating considerably. The average price of a house increased by just 1.8 per cent in the five months to May. This was half the growth over the same period last year.
In its monthly statistics the Central Bank said term and revolving loans increased by almost €4 billion and that loans up to and including one year rose by €531 million.
The value of the SSIA accounts held in the State grew by €152 million to €5.8 billion by the end of June.
Yesterday its quarterly bulletin yesterday the Central Bank o published its latest forecasts for the economy suggesting GDP will grow by 5½ per cent this year.
The Bank also warned that the level and rate of private sector credit growth was a risks to the Irish economy
Private sector credit growth has been in the order of 26 to 27 per cent almost every month since December 2004.