OECD Warns Riksbank Against Obsessing Over Record Debt

The Riksbank should stop worrying about Sweden’s record private debt load and could do more to support economic growth, said Pier Carlo Padoan, chief economist at the Organization for Economic Cooperation and Development.

“We’re not tremendously concerned about household debt,” Padoan, who’s also deputy secretary-general of the Paris-based group comprising the world’s developed economies, said in a Dec. 2 interview in Stockholm. “There’s not really a risk of a bubble. I don’t think that cutting rates by itself would send debt higher, would signal that there are easier monetary and financing conditions.”