() - The Swedish central bank needs to raise its repo rate at every meeting this year and next, Riksbank First Deputy Governor Svante Oberg said Friday.

“The repo rate needs to be raised at every meeting this year, and perhaps next year too,” Oberg said in a speech delivered in Stockholm.

According to Oberg, the highly expansionary monetary policy in Sweden and abroad in the years prior to the recent financial crisis was one of several contributing factors to U.S. housing and mortgage market outburst.

“When the bubble burst, the rest of the world suffered the consequences,” he said.

The central banker said the strong economic recovery in Sweden last year proves that the country’s monetary policy has moved in a less expansionary direction.

In February, the Riksbank raised the repo rate by a quarter percentage point to 1.50 percent. That was the fifth straight rate hike since July 2010.

Similar Posts:

• ECB’s Trichet Signals Tightening Not Over Yet
• Bank Of England Policymakers Remain Split On Rates, QE
• UK House Prices Continue To Fall In June: RICS
• Thai Trade Balance Due On Thursday
• Protesters Occupy Davos —in Igloos