Demand for private-sector credit falls as interest rates rise

RISING interest rates are starting to hit the demand for private-sector credit, according to the latest figures from the Central Bank.

In January, borrowing rose €3.4 billion, well below the 2006 monthly average €4.9bn, reflecting a continuing decline in the demand for home loans and some slowdown also in borrowing for other uses.

According to the bank, demand for housing finance hit its slowest level since October 2004 as non-mortgage credit again expanded faster than mortgage lending.