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Sweden's dilemma: massive household debt amid zero interest rates

Preventing a steep fall in property prices and consumer confidence seen as a tough task for govt and regulators

Sweden's household debt-to-income ratio has risen to above 170 per cent - among Europe's highest. The worry is that private consumption, nearly half of GDP, would suffer if rates rose or property prices fell.


SWEDEN'S new centre-left government and its financial authorities are under huge pressure when they meet on Tuesday to tackle a mountain of household debt that is casting a long shadow over one of Europe's few economic bright spots.

Having slashed rates to zero to fight...

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