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Swedish central bank to recruit new directors as opinion divides over banks persistence to keep rate high

Sunday, 27 November 2011
Swedish central bank, the Riksbank has threatened to still maintain its interest rate growth increases, despite the deepening debt crisis and impending collapse of the euro.

This is seen as a necessity given the nature of the Swedish housing market which seen its house prices over inflated. Should the interest rated reduced it would mean that mortgages will become cheaper and that will fuel demand as such the house pieces will continue to rise.

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Given that internally and externally there is increasing concern about the nature of the Swedish real estate sector, and the fear that there is great mismatch between earning and house prices, it is determined that the rates must be kept up.

Also as some analysts feel that it will take about 125 years for a Swedish home owner to complete his or her mortgage payment, this is a strong headache to the Swedish central bank who would want to keep the rates up so that organically, the house prices could start falling again.

In the New Year though, there will be a replacement a third of the Directors on the bank’s various organs against unknown persons.  For several years, it is a rule that interest rate votes in by the six-strong Executive Board should come to place so as to end the 4 to 2.
The bank confirms that at this moment there is currently a recruitment drive for new directors.
By Scancomark.se Team


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