Sweden’s top financial regulator took aim at the country’s booming property market with a proposal on Tuesday that banks limit the value of home loans to 85% of a property’s value. Swedish policymakers and regulators have been increasingly concerned about rising household debt levels and fast-rising property prices despite the economic downturn, and are keen to let some steam out of the market. They are aware that raising borrowing costs too quickly could stymie the country’s still-shaky recovery from country’s deepest recession in more than half a century.
