Sweden's central bank warns of increased risks in its financial system

[Swedish Central Bank warns of increased risks in the country's financial system]-the Swedish Central Bank issued a "Financial Stability report" on June 1, local time, arguing that high inflation and high interest rates pose a challenge to the stability of the country's financial system, and this risk is increasing. Global inflation has risen at its strongest and fastest pace in decades since 2021, the report said. As a result, monetary policy tightened rapidly, the prices of various physical and financial assets fell, market volatility increased, and financial conditions tightened significantly. Sweden's inflation rate was still as high as 10.5% in April, down slightly from 12% in February, but has been above 10% for eight consecutive months, according to the Swedish Central Bureau of Statistics. In an effort to curb inflation, the Swedish central bank has raised interest rates several times since last year and raised its benchmark interest rate by 50 basis points to 3.5% at the end of April.