Riksbank: Sweden’s financial system working well

Sweden's central bank has said it is following carefully the turbulence on the international financial markets triggered by problems in US sub-prime mortgages.

“Our continuous monitoring of the financial markets means that we are well-informed,” said Lars E.O. Svensson, deputy governor of the Riksbank in a speech on Wednesday.

“The Swedish money market and the financial system are functioning well,” Svensson added in the speech at a meeting at Danske Bank in Stockholm.

Svensson noted that new information had been coming in since the Riksbank’s monetary policy report in June, in which it predicted higher interest rates than had previously been expected.

But he said he “not particularly interested in interpreting week by week how this information may possibly change forecasts,” according to the version of his speech published on the Riksbank’s website.

“Instead I prefer to gain an overall grasp of the new situation prior to the next monetary policy meeting in September,” he said.