Jul 122014
 

”Concerns about financial stability drove the central bank’s bullheaded choice to keep rates up even as economic conditions deteriorated. The Riksbank worried that rising household borrowing and soaring house prices could lead to trouble down the road. /…/

riksbanken ränta

It seems instead to have taken the air out of everything but exuberant markets. Unemployment in Sweden has held steady over the past year; in the euro area it has declined. Sweden’s inflation rate has turned negative, at -0.2%; the euro zone’s is at least positive, at 0.5%. Meanwhile, Swedish private-sector debt as a share of GDP is higher now than it was in 2010 and home prices continue to climb.”

The Economist