Riksbank warns of rising financial stability risks in Sweden
Global economic slowdown and continued low rates may encourage greater risk-taking
Sveriges Riksbank warns financial stability risks in Sweden have increased since the spring due to higher risk-taking, driven by lower-for-longer interest rates.
In its financial stability report, the Swedish central bank stresses “the slowdown in the global economy has contributed to expectations of continued very low interest rates in the years ahead”.
In the face of ever lower returns, market participants may be encouraged to adopt riskier investment strategies. This “can cause assets to be
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