Due to high inflation and increasing interest rates, Sweden’s financial stability is strained and the risks are increasing, the country’s central bank (Riksbank) said in a report.
“We have had many years of low inflation and low interest rates. This has increased risk-taking in the financial system and the economy in general,” Riksbank Governor Erik Thedeen said at a press conference held in connection with the release of the bank’s latest Financial Stability Report.
Since 2021, global inflation has been high and tightened monetary policy with rate hikes has followed in its wake, reports Xinhua news agency.
Read More : Swedish Central Bank Raises Concerns Over Risks to Financial Stability