I’m not so sure that a rate hike would be devastating for Swedish loan takers; banks typically don’t give out loans to households that can’t handle large increases. Real estate prices would probably come down a bit, but people would hardly be forced to sell as long as they keep their income. People with large loans typically have large financial buffers.
I’m also suspecting that politicians will step in with deductions, etc.
High and growing household indebtedness continues to pose the greatest risk in the Swedish economy. To come to grips with the problems associated with household indebtedness, it is, above all, important that measures are taken within housing and tax policy. At the same time, there are structural vulnerabilities and risks linked to the banking system in Sweden. It is therefore important that the banks have sufficient capital and insure themselves against liquidity risks in different currencies. As the risks linked to international developments are assessed to be greater now than in the spring, it is even more important to manage the risks and vulnerabilities in the Swedish financial system.
I’m also suspecting that politicians will step in with deductions, etc.