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STOCKHOLM, May 4 (Reuters) - The extension of the Swedish central bank's bond buying programme is an insurance against a worse-than-expected economic outcome, Deputy Govenor Per Jansson said on Thursday.
Last week, the Riksbank surpised the market and said it would extend its bond buying programme by 15 billion Swedish crowns ($1.70 billion).
"The way I saw it was, should I buy insurance that costs around 5 percent in order to avoid what could be a real nightmare scenario," Jansson said, referring to the 15 billion crown extention of the total programme of 290 billion crowns. ($1 = 8.8262 Swedish crowns) (Reporting by Simon Johnson)