| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 European
 International
 
 Analysis/Comment

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

We provide access to live business television and business related videos from: Bloomberg TV; The Wall Street Journal; CNBC and the Financial Times. Click image:

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax 2008

Climate Change Reports

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Apr 24, 2009 - 5:31:05 PM


Central Bank says annual rate of increase in Irish residential mortgages fell to 5.4% in January 2009 - - the lowest annual rate of increase since 1986
By Finfacts Team
Feb 27, 2009 - 11:01:36 AM

Email this article
 Printer friendly page

Source: Central Bank and Financial Services Authority of Ireland

The Central Bank said today, that the annual rate of increase in Irish residential mortgages fell to 5.4 per cent in January 2009 from 5.8 per cent in December  - - the lowest annual rate of increase since 1986.

The annual rate of increase of Private Sector Credit (PSC) declined by half a percentage point to 6 per cent in January 2009, and the non-mortgage credit growth rate, which includes holdings of  securities, declined to 13.6 per cent. The sectoral breakdown of credit in Ireland for December 2008, which is available here, shows continued slowdown in lending to non-financial corporates, with significant sectors such as real estate and construction among these.

The Central Bank says prior to 2007, January was typically one of the weakest months in terms of residential mortgage lending. However, in January 2009 the net increase in residential mortgages (including securitised mortgages) of €350 million was equal to the total for the final quarter of 2008. Despite its relative strong rise in January, the outlook for mortgage lending is uncertain as the Irish results of the euro area bank lending survey indicate that demand for loans to households during the first quarter of 2009 is expected to decline.

Source: Central Bank and Financial Services Authority of Ireland

Money market interest rates fell sharply again in January. The largest decrease was in the overnight rate, which fell by 108 basis points, while the 3-month rate declined by 80 basis points, and the 12-month rate by 78 basis points. Funds provided by the Bank as part of the ECB’s monetary policy operations increased by €2.6 billion in January, with a fall of €3.3 billion in main refinancing operations being more than offset by a rise in longer-term refinancing operations. The euro depreciated significantly against the US dollar, sterling and the Japanese yen in January, by 7.9 per cent, 5.7 per cent, and 8.8 per cent respectively.

Exchange-rate movements resulted in a 0.25 per cent decrease in Ireland's average nominal harmonised competitiveness indicator (HCI - -

A decrease in the indicator points to an improvement in price competitiveness, while an increase points to a disimprovement.) in January, which fell to 113.3, from 113.6 in December.

Private-Sector Credit

Total lending by credit institutions in Ireland to non-Government Irish residents increased by €3.3 billion in January to €395.7 billion. Non-euro denominated lending accounted for almost all of the increase in PSC. Lending to non-bank IFSC companies rose by €1.2 billion over the month.

– Components of Private-Sector Credit

The changes in the main PSC loan categories on credit institutions’ balance sheets in January were as follows:

  • Term/revolving loans increased by €1.7 billion;

  • Residential mortgages (unadjusted for securitised mortgages) rose by €482 million;

  • Other mortgages were €245 million lower;

  • Loans up to and including one year expanded by €797 million; and

  • Overdrafts increased by €350 million.

Money Supply

Credit institutions in Ireland accounted for €208 billion of the euro area’s broad money supply (M3) in January, a monthly decrease of €9.3 billion, or 4.3 per cent. As a result, the annual fall in M3 in January was 6.7 per cent, from a revised decrease of 1.9 per cent in December.

Holdings of euro area debt securities with up to two years maturity by Irish MFIs (Monetary Financial Institutions), which are netted out of the money supply contribution, rose by €7.6 billion in January, while debt securities issued by Irish MFIs increased by €1.4 billion, giving a net decline in debt securities of €6.1 billion. In addition, deposits with up to two years maturity declined by €6.2 billion over the month. One factor contributing to the decline in deposits was the classification of Irish credit unions as ‘credit institutions’ from 1 January 2009. As a result, credit union deposits were reclassified – from non-MFI to MFI deposits – which removed them from the money supply measure. An increase in currency issued partly offset these declines.

− Breakdowns of Deposits

  • Overnight deposits decreased by €1.2 billion;

  • Deposits redeemable at notice of up to three months rose by €345 million; and

  • Deposits with an agreed maturity of up to two years fell by €6.2 billion.

Related Articles


© Copyright 2009 by Finfacts.com

Top of Page

Irish
Latest Headlines
Irish Economy: Central Bank says economy undergoing modest recovery this year; Forecasts growth of GDP and GNP in range of 2.2 to 2.8 % in 2011
Irish retail sales fell 0.2% in June
O'Keeffe provides €7m fund for academic researchers to commercialise their work
Irish average national house prices fell by 1.7% in Q2 2010; Fall in H1 2010 was 6.4%; Average price is at 2001 level
Dublin's Docklands Authority cuts deficit from €213m to €19m in 2009; Agency left with 34 Council/Executive Board members and 27 staff
Irish Glass Bottle site loans transferred to NAMA
Online advertising expenditure in Ireland in 2009 reached €97.2m or maybe not
Financial Services Ombudsman criticises “unwarranted and unsolicited” moves by Irish banks to move people off low-rate tracker mortgages
Cowen announces what he terms 7-year €40bn 'stimulus for growth and job creation'
Irish commercial property returns fell in Q2 2010 after a slight rise in the first quarter
Permanent tsb to raise variable mortgage interest rates
Irish goods exports rose 8% in year to May; Minister lauds "remarkable achievement" of US-owned firms; Claims "strong vindication of the Government’s work"
Lenihan announces review group to report on disposal of State commercial assets
Enterprise Ireland launches Seed & Venture Capital report for 2009
National Competitiveness Council publishes 'Costs of Doing Business in Ireland in 2010' report
Elan reports net loss of $213m in second quarter
Central Bank and Financial Regulator say review of Irish banks’ mortgage lending policy for first time buyers shows practices need to be improved
Profits earned by Irish hotels have plummeted by 50% since 2007; Room rates said to have dropped to 1999 levels
Irish economy maybe set for high growth or low growth by 2015 says ESRI: Full employment in prospect or maybe not
Campaign for Change at One51 dissidents announce nominees for election to board of One51 at AGM