Private sector credit up 24.7 per cent

BANK credit to the private sector rose 24.7 per cent year on year in September, edging up from the 24.2 per cent year on year growth of August, the Central Bank said yesterday.

Provisional figures released yesterday suggested credit growth was strong in spite of Central Bank appeals to commercial banks to show restraint and be more prudent in lending cash.

Claims on the private sector stood at £13.08 billion in total at the end of September, compared with £12.8 billion at the end of August.

The increase in lending was mainly attributed to housing and construction related loans.
The Central Bank has warned repeatedly in recent months that loans to the private sector was pushing property prices higher and could fuel inflationary pressures.

EU harmonised inflation was running at 2.3 per cent in September from 2.2 per cent in August.

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