Growth in private-sector credit continued to slow in January, according to new credit figures released by the Central Bank yesterday.

The figures also reveal that Special Savings Incentive Account (SSIA) balances with banks fell by €225 million in the month. This implies a monthly withdrawal rate of 5 per cent which, if sustained, would mean that just over half of all the money in SSIA accounts would be withdrawn.

Compared with growth of 25.9 per cent last December, public-sector credit grew by 25.3 per cent in January, the lowest rate of increase since October 2004.

Growth in residential mortgage lending fell back from 25.5 per cent in December to 25 per cent in January, its lowest rate since October 2003.

In a further sign that higher interest rates are hitting consumer credit, outstanding credit card indebtedness fell by €41.4 million.

The level of outstanding private sector credit reached €321 billion in January, up €3.4 billion on December's level and almost €60 billion higher than in January 2006.

Of this, the level of residential mortgage lending rose to €124.6 billion, adding €1.3 billion in the month and €16 billion in the 12 months to January. The monthly change in mortgage lending was the lowest in nearly two years.