Private-sector credit growth increased in July, rising by 12.5 per cent on the year, according to figures released today by the Central Bank. This compares to June, when the annual growth rate was 11.8 per cent.
However the Bank notes that the increase was due mainly to an exceptional item in July of last year. Adjusting for this item, the annual growth rate was steady between June and July.
The trend for residential mortgage lending remains upwards showing an increase for the fifth consecutive month in July. The growth rate, adjusted for securitisations, rose to 19.6 per cent in July from 19.4 per cent in June. This is compared to a growth rate of just below 18 per cent at the end of last year.
Lending by credit institutions in Ireland to non-Government Irish residents increased by €1.5 billion to €135.7 billion in July, a rise of 1.1 per cent, which compares to a fall of 0.3 per cent in the same month last year.
The Special Savings Incentive Account deposit balances with credit institutions increased by €124 million to €905 million in July. Credit institutions in Ireland contributed €135 billion to the euro area’s broad money stock (M3) in July, which was almost 2.5 per cent of the total.