Bloomberg wrote that Sweden’s central bank will need to compensate for keeping rates too high by delaying a planned tightening cycle as its actions keep inflation below target, according to Deputy Governor Martin Flodén.

“There are stronger reasons to cut the rate than to allow this worry about household debt to affect monetary policy,” Floden told the news agency. “It would be better to cut the rate now so that we move quicker toward the inflation target and can raise rates faster, than we would have if we don’t cut the rate.”

The Riksbank kept its repo rate at 1 percent this month.