Sweden’s central bank has warned that the ongoing Middle East war is adding to global financial uncertainty, even though the global financial system has performed well. The conflict has created turbulence in markets and could, if it drags on, raise inflation and interest rates while weakening the economy, potentially harming financial markets and actors. Global vulnerabilities—high public debt, a growing non‑bank sector, high asset valuations, and rising cyber risks—could compound these effects and threaten stability, including in Sweden. Sweden’s banks have maintained strong liquidity and credit remains restrained, but structural risks remain, such as international exposures and high leverage in the commercial real‑estate sector. The bank has kept the countercyclical buffer at 2 %.
Source: Sveriges Riksbank.
Data reproduced from https://www.riksbank.se/ (open data).
Open data, freely available.
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