Riksbank: A slower rate of increase of household indebtedness is needed for stability

According to the latest paper published by the Swedish central bank, Riksbank, “high and rising household indebtedness currently poses the greatest risk to the Swedish economy.”

Key Quotes:

“High and rising household indebtedness currently poses the greatest risk to the Swedish economy. It is important therefore that the proposal for a stricter amortization requirement is put in place. It is also important to implement measures within housing and tax policies to increase the resilience of the household sector and reduce the risks. A slower rate of price increase for housing will contribute to a more stable development on the housing market and a slower rate of increase in household debt.”