STOCKHOLM: Sweden's central bank still needs to consider the risks from soaring household debt even if low inflation and the need to stimulate the economy has lately come to the fore, Riksbank Deputy Governor Per Jansson said in a newspaper interview.
The Riksbank put aside concerns about levels of household debt - among the highest in Europe at more than 170 percent of disposable income - and cut rates in December to address unexpectedly subdued inflation.
Inflation remains far below the Riksbank's 2 percent target, but concerns about household debt also remain for many of the central bank board members.
"No, that consideration remains. What has happened is that the need for stimulus has increased, but the risks linked to household debt have not disappeared," Jansson was quoted as saying by business daily Dagens Industri on Saturday.
"And monetary policy is not unimportant for lending and residential property prices. We have a role to play there whether we like it or not."
Jansson also said that both the Swedish and global economies were showing signs of having entered a phase of recovery.
"Things are looking better," he was quoted as saying.
"In Sweden we had a really strong GDP figure for the fourth quarter. There may be temporary factors involved in that figure, but it is still clear that the indicators and the economic conditions abroad are improving."
The Swedish central bank holds its next monetary policy meeting on April 8 with its rate decision published the following day.
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