The Central Bank says it can adjust its new mortgage rules announced recently if necessary.

In its Quarterly bulletin the Bank says loan to value limits announced last month are flexible enough to be adjusted in the future to economic or market developments.

The Bank has also issues an optimistic forecast for the year ahead predicting GDP growth of 3.7 per cent this year, an increase of 0.3 per cent

However it is warning that high public and private indebtedness persists.