September 20, 2016 / 5:26 PM / 3 years ago

Sweden's central bank governor says problematic to buy mortgage bonds

BUENOS AIRES, Sept 20 (Reuters) - If more quantitative easing is needed in Sweden it would be problematic to buy mortgage bonds, Swedish central bank governor Stefan Ingves said on Tuesday.

When asked about deputy governor Per Jansson’s statement that it would be problematic for the Riksbank to buy Swedish mortgage bonds, Ingves said: “I share that view”.

The Swedish central bank has cut interest rates to a record low -0.5 percent and launched a bond buying programme to force inflation closer to its 2 percent target. With the central bank now owning 40 percent of government bonds other types of bonds are being discussed.

Ingves and other members of the Riksbank governing board have repeatedly warned about Sweden’s red-hot housing market.

Reporting by Luc Cohen, writing by Johan Ahlander; Editing by Janet Lawrence

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