STOCKHOLM, Nov 29 (Reuters) - Sweden’s economy is strong, but as monetary policy globally is becomes less accommodating there are risks to financial stability, particularly from high household debt, the financial watchdog said on Wednesday.
“Even though house prices have slowed and even fallen slightly, household debt continues to increase,” the Swedish Financial Supervisory Authority in its twice-yearly stability report.
“The risks associated with high house prices and large household debt continue to be elevated.”
The government is set to give its backing to the FSA’s proposal to tighten mortgage repayment rules for big borrowers, despite worries fresh regulation could spook property buyers and deepen a recent fall in prices. (Reporting by Stockholm Newsroom; Editing by Toby Chopra)