Credit growth slowed slightly in August as people repaid loans from the Telecom Eireann floatation.

Private sector credit rose by 1.4 per cent in August from a month earlier. The annual increase was some 31.1 per cent, down slightly from 32.22 per cent in July.

The annual rate continues to be inflated by loans taken out to fund the merger between Irish Life and Irish Permanent in April this year. Adjusting for this, the annual rate of growth would be just below 27 per cent in August.

Residential mortgage lending rose by 23.3 in August compared with 22.7 per cent in July.

According to Mr Alan McQuaid, economist at Bloxham Stockbrokers, despite the fall in growth in August, the rate of expansion remains extremely high by any standards.