Sweden's news in English

Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Rates will rise further ? bank chief

Share this article

18:13 CET+01:00
Sweden's high growth rate means that further interest rate rises are to be expected, the new governor of Sweden's central bank, the Riksbank, has said.

Stefan Ingves, in his first speech as governor, said on Monday that the circumstances that led to the bank's last rate rise in January have not changed. High growth and the threat of inflation were not the only factors that made rate rises likely, Ingves said.

“Household debt and house prices are also important factors, although they are not in any way decisive for this interest rate decision.”

The housing market is now heading for a soft landing, Ingves predicted.

“A gentle readjustment is likely to be ahead of us with the speed of house price rises slowing somewhat,” he said.

“If house prices and household debt were to continue rising very rapidly, there would be a risk of a more dramatic correction further down the line, with real economic effects and effects on inflation. Against this background a further interest rate increase seems appropriate.”

TT/The Local

Get notified about breaking news on The Local

Share this article

From our sponsors

How to work 9-5 and travel the rest of the time

A full-time job shouldn't stop you from satisfying your wanderlust. The Local spoke to Travel After 5 blogger Alline Waldhelm to find out her tips and tricks for travellers who only have 25 days of annual leave.

Discussion forum