Will anyone save Sweden’s housing market?

As the country's currency begins to reflect the housing prices, will the central bank step in?


Sweden’s housing market — the biggest in Scandinavia — may face correction due to its central bank, Riksbank, deciding to take a hands-off approach, but now price declines are beginning to effect the country’s currency.

According to Bloomberg, there are signs that the ripple-effect of housing markets prices is making Riksbank rethink its approach: in a recent meeting, the bank’s deputy governor Cecilia Skingsley said the housing market “must be carefully monitored,” setting off speculation that Riksbank may be contemplating stepping in with stimulus packages.

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Though Nordea analyst Andreas Wallstrom is not holding his breath. He told Bloomberg that home prices will need “a sharp drop” and a case for their clear impact on the country’s economy before the bank gets involved.

[Bloomberg] — E.K. Hudson