Lending to the private sector slowed in December but technical factors were partly behind the decrease.

Figures released by the Central Bank yesterday showed that the adjusted annual rate of growth in private sector credit slowed to 23.6 per cent from 24.5 per cent in November.

The growth in residential mortgage lending slowed to 18.8 per cent from 20.1 per cent in November. However, the decline was mainly the result of a base effect following reclassifications in December 1997 which exaggerated the increase in residential mortgages that month, the bank said.

Non-mortgage lending was broadly unchanged at 24.1 per cent.