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Stefan Ingves calls for faster mortgage repayments

Published onsdag 5 november 2014 kl 11.20
The governor of the Bank of Sweden, Stefan Ingves. Photo: Riksbanken

The governor of the Bank of Sweden wants households in Sweden to pay off their mortgages quicker.

Writing in the daily Dagens Nyheter, Stefan Ingves says the rapid growth of mortgage sizes has to be stopped, and one way of doing that is by forcing people to pay off their loans quicker.

Ingves had made similar comments in the past, and writes: "The measures that are needed may not always be popular, but it will make it easier in the future, especially the day when interest rates go up again".

The Bank of Sweden, the Riksbank, recently cut its key interest rate to zero in an attempt to speed up inflation, which is currently far below the bank's target of two percent.

Mortgages are currently growing faster than BNP, Ingves says.

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