Credit growth eased in July from a six-year high as borrowers stepped up their repayments on credit cards ahead of higher interest rates, new figures show.
The private sector credit figures compiled by the Central Bank show that the annual rate of credit growth slowed to 29.2 per cent in July compared with 30.3 per cent in June.
The total amount of credit extended in July was €4.7 billion, bringing total outstanding debt to €293.4 billion. If the August and September figures follow recent trends then total indebtedness will reach €300 billion by the end of September.
Residential mortgages continued to increase strongly during July, with a monthly rise of €2.4 billion - the highest monthly increase in 2006 so far, bringing total mortgage borrowing to €113.2 billion.
This figure would have been higher but for a €1.4 billion securitisation which removes mortgages from lenders' books.
Although still rising, debt on credit cards and term loans eased during July, falling from 32.6 per cent in June to 31.8 per cent in July as lenders reported a higher level of repayments, the Central Bank said.