The Riksbank and the Financial Supervisory Authority are closely following the turbulence that has arisen in the US banking system. Riksbank Governor Erik Thedéen believes that the consequential effects will continue to affect the Swedish economy. – If you get changes in the American economy, interest rates and stock exchanges, then it spreads to the rest of the world. This is what the system looks like, he says. On Monday, occupational pension company Alecta admitted that their investments in American niche banks have so far resulted in losses of SEK 12 billion. This as a result of three banks not getting their finances together and therefore being taken over by American authorities. In addition to the Swedish pension savers’ shortfall, further negative consequences can be expected. According to Riksbank governor Erik Thedéen, however, it is too early to say at the moment. – It could have a negative effect on the Swedish economy, but it could also be that this crisis subsides quite soon, he says. “Obviously” that the Swedish interest rate is affected The Riksbank and the Financial Supervisory Authority now cooperate closely in their monitoring of events in the USA and the rest of the world. That the banking turmoil will affect Swedish interest rates is certain, but even that is too early to forecast. – There are parts of this that will obviously affect the interest rate here in Sweden, but there are other factors that may have gone in a different direction. We have to object to the statistics that will come in the next few weeks before we can give an announcement, says Erik Thedéen. To compare today’s situation with the start of the deep financial crisis that took off in 2008 is, according to the Riksbank’s assessment, too premature. – We are not ruling anything out, but it is too early to say. We have a relatively serious situation in the American economy, which is also developing every day, says Erik Thedéen. Although the American economy is very different for Sweden, there are local concerns for the Swedish economy. Where the Swede’s high indebtedness is particularly worrying. – What we see, and have warned about, is that we have a high level of indebtedness in Sweden. Here we are quite different from many other countries, we stand out in terms of debt in households and that there is a lot of variable interest, he says.
t4-general
The Governor of the Riksbank on the chaos: “Spreading to the rest of the world”
