Elevated risk

In a report presented on Thursday, Sweden’s financial supervisory authority Finansinspektion (FI) said that new rules introduced in June last year, forcing new mortgage borrowers to pay down their loans, had helped make households more resilient, but the full effect would take years to realise (ed.). FI’s chief economist, Henrik Braconier, warned of an elevated risk that house prices could fall sharply, as could income, and of the likelihood of rising interest rates.