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Riksbank's Nyberg says housing mkt not yet a problem

Wed Nov 18, 2009 9:18am EST

STOCKHOLM, Nov 18 (Reuters) - Swedish central bank Deputy Governor Lars Nyberg said on Wednesday he did not believe developments in Sweden's housing market posed a problem at least in the short term.

Nyberg said the increase in housing prices and in household debt was not sustainable in the long term but that there was little the Riksbank could do with monetary policy to control the imbalances.

"We need to have a low interest rate for a longer period of time in order to stimulate the growth needed to help Sweden out of the crisis," he said in a speech posted on the central bank's website.

"At present, it is not the time to counteract imbalances by leaning against the wind."

The Riksbank left rates unchanged last month and forecast they would stay at a record low of 0.25 percent through the autumn of 2010.



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