Economics

Swedes Get a Real-Life Stress Test as Rate Hikes Loom

  • Riksbank’s abrupt policy shift means squeeze on borrowers
  • Risk is of unintended consequences, Handelsbanken analyst says
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For many of Sweden’s highly indebted consumers, the Riksbank’s sudden interest-rate increase at the end of April marks the start of a new squeeze that officials have long fretted about.