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Ingves: Interest rates stable all year

Published: 2 Jan 12 10:32 CET | Print version
Online: http://www.thelocal.se/38280/20120102/

The head of Sweden's central bank has said he expects Sweden's interest rates to remain at their current low level in 2012, but warned banks that they must be more open about how much they earn from lending to customers.

Governor Stefan Ingves defended the Riksbank's policies, despite concerns that banks are not passing on lower interest rates to borrowers:

“Our interest rate decisions have an impact, even if they do not have an immediate effect. The monetary policy of Riksbanken is still effective in terms of capital management," Ingves told the Dagens Nyheter daily.

But, he said, banks should have "clearer policies as to how they declare their margins.".

Concerns were raised after last December's interest rate cut, as banks were slow to follow suit and cut mortgage rates.

On the broader economic outlook, Ingves said Swedish banks' reliance on international loans made it harder to maintain stability. However, he said Swedes had reason to be optimistic about the year ahead, despite great financial turmoil in the world.

“Sweden has a steady position with low debts and a balanced government budget. Expectations both for inflation and long-term inflation remain under control. Meanwhile, financial growth and productivity have developed well,” he told DN.

While Sweden’s export figures represent half of its gross domestic product it also has strong capital flows, which strengthens the positive outlook, according to Ingves.

The purchasing index in Sweden, which reflects industrial economic activity, was on the up in December coming in at 48.9 percent, compared to 47.6 percent the previous month.

The Local/js (news@thelocal.se)

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19:33 January 2, 2012 by viennacalling
Good to see the PMI on the rise to 48.9 for december same as France on 48.9 Germany on 48.4 and Austria at 49.0, the main laggards were italy and spain

keep up the good work sweden !
01:11 January 3, 2012 by Tanskalainen
Just what the hell is Ron Howard doing in Sweden posing as a bank official?
14:00 January 9, 2012 by shahislam
The Humanitarian USA will never lose its positive power to stay always stronger and possibly will continue to be the strongest in the rapidly changing new world with aid of united North-American natural resources and millions of fresh jobs in own territories and beyond.

The comedy of War scenarios in the International horizon is being perpitrated by a bunch of idiots, no one should underestimate Obama's wisdom because God is behind each honest guys like him, especially this time around, and kindly trust my words because the source is so clear that I have and no one should have any trace of doubts in minds. Just support where ever you are and distribute the following to all the readers all over the world S.V.P..

We shouldn't blame the governments only, the 'more than 99% of the non-violent minded good public should raise their voice to start demanding the banning of private guns from the streets of USA. In a decade, we'll be able to see 'Less crimes would be committed by guns' in Americas and on the global streets.

It's a chance for Dumb politicians of religions to increase production and sell oil for cheaper prices through one on one cash dealings in the black market and global public will be benefited too. Forget about war. Million of dollars costing bombs and war machines, at the expense of financial sufferings of millions of Western public, have absolutely failed to kill just a single head such as Gaddafi's, or Bin Laden's or Saddam's in recent past. Nuclear threat is the same; effectively nothing more than a propaganda only to create fears for the idiots by the more idiots as dumb heads. Koreas, Pakistanis, Indians etc. make Nuke

stuffs and the public suffers from poverty.

There will be never ever be any real shortage of fuel for energy on earth; it's the production limitatation against demand and imposed by Billionaires in control of oil business industry, OPEC, Arab leagues etc.

The Mullahs as Iranian heads have recently got their heads totally malfunctioning by the support of some hedgehog-type newly become bouncing 'oil money rich unscrupulous businessmen' of Western origins from many parts of the world that include China, Russia, Switzerland, India, Saudi-Arabia, Brazil, Venezuella etc. These blind fools would be better off, by being friendly with America and with the flow of popular wishes of interconnected global young generation. God is now with humanitarian minded honest guys, therefore, no power can defeat humanitarian: America or United Notrh-America as long as under the leader-ship and adviser of totally honest and unselfish Honorable Mr. Barack Obama.
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