Borrowing by businesses and individuals edged upwards in October, the Central Bank said yesterday, climbing to an annualised rate of 34 per cent from 33.9 per cent.

The Bank said in a statement that private sector credit growth continued to be inflated by "an exceptional item related to the merger between Irish Life and Irish Permanent" last April. In October, lending increased by €2.13 billion (£1.68 billion), or 2.5 per cent, the Bank added.