Riksbank seeing weaker than expected economy

A deputy governor of Sweden's Riksbank, Kristina Persson, said Tuesday 24 May the central bank is seeing signs of somewhat weaker economic activity than it had previously expected.

'Should this tendency prove to be more persistent, there is a risk of an economic downturn, with a softer inflation outlook as a consequence,' Persson said.

She said she has previously noted a risk that rising interest rates and falling house prices could lead to unnecessary strains in the real economy in the long run

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