Riksbank prepared to do more

Sweden’s central bank, the Riksbank, has kept its benchmark interest rate, the repo rate, at a record low of -0.35 per cent, but says it is ready to do more if needed. Market reaction was muted yesterday although the Swedish krona strengthened against the euro.

In a press release, the Riksbank said it had upwardly revised its forecast for GDP growth to 3.7 per cent this year and 3.6 per cent in 2016, as a result of strong economic activity.

However, the housing market is “out of balance” and it is of the utmost importance that the measures are taken to create a better balance between supply and demand, and reduce the incentives for households to take on debt, the bank said (ed.).