Riksbank: We must take action on household debt

Riksbank: We must take action on household debt
Riksbank Governor Stefan Ingves. Photo: Pontus Lundahl/TT
The Swedish economy is beginning to recover after several difficult years - but the risk for household indebtedness remains high, Swedish Riksbank Governor Stefan Ingves warned.

Ingves said on Tuesday that maintaining low interest rates was critical for the Swedish economy, in order to help inflation rise towards the target levels of 2 percent.

However, he pointed out that low interest rates also increased the risk of high household debt. 

"Our judgement is that the measures we have already taken are not enough," the Riksbank general stated. "We need to do more." 

Ingves said that immediate measures must be taken in other areas of national policy in order to manage these risks in the housing market.

He also hinted that the national bank's repo rates would climb if politicians and agencies did not take immediate action. 

In July the Riksbank announced a low main interest rate of 0.25 percent, described by media as a "truly shocking" rate.

Any increases to the rate, the bank added, were not expected until the end of next year.

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