The Central Bank has left a key control mechanism for bank lending unchanged again, amid a generally subdued  picture for bank lending.

The Central Bank said it was leaving the countercyclical capital buffer (CCyB) rate at 0% for the fourth quarter of 2017. 

The rate will be effective from October 1, 2017.

While aggregate credit conditions remain subdued, the Central Bank did note that gross new lending is continuing to increase.

It said this is reflected in pockets of credit growth in certain segments of the market, including the fact that credit growth on household loans turned marginally positive in July for the first time since 2009.

Price growth in the residential property market has also strengthened further and is now in double digits as supply constraints persist while demand continues to grow through rising incomes and employment.

The CCyB rate is reviewed quarterly and can be increased up to 2.5% of total risk if the Central Bank judges lending to be excessive.

A CCyB rate of 1% is the level that reflects an economy that is running normally.