Expert: Riksbank’s statement will push up house prices

House prices are rising and are likely to continue doing so after the Riksbank’s announcement of a negative interest rate and a program for the purchase of government bonds, according to an assessment by economics professor Stellan Lundström. “We have a hot housing market… we have low supply and high demand, low new production and continued favourable business conditions with very low interest rates” he told the news bureau TT. The Minister for Finance, Magdalena Andersson (S), echoed the sentiment. In an interview, she told TT that she did not want to comment on the interest rate decision, but noted that long periods of low interest rates create a risk that prices of assets such as houses and shares, increase significantly.