BIS central bankers’ speeches  7  GDP growth in the euro area are to some extent counteracted by the good development of the economies in the United States, the United Kingdom and China. In the United States, GDP grew rapidly during the second quarter, and labour market data indicate that developments will remain strong. Prior to the next monetary policy meeting, we will of course continue to monitor developments in Russia and Ukraine, and we will analyse what they may mean for economic prospects abroad. With regard to developments in Sweden, GDP growth was somewhat weaker during the second quarter than we were expecting in July. Household consumption and housing investment remained strong, while exports remained weak. The indicators we have received regarding growth give slightly mixed signals. The business tendency survey, which summarises the situation for the Swedish economy, fell somewhat in July. On the other hand, the purchasing managers’ index for the services sector for the same month increased substantially. One can also note that the outcomes for unemployment received for June and July on the whole have been somewhat lower than the July forecast. The inflation figures for June and July show that both the CPI and the CPIF increased somewhat faster than the forecast in July. As you may note, the information received since the monetary policy in July tends to point in different directions, and it is too early yet to say how monetary policy will be affected.
Some issues that were taken up at this meeting were tougher capital requirement for Swedish banks and the need for measures to manage households’ high and growing indebtedness.9 Prior to the May meeting, Finansinspektionen published a proposal for how the new European capital adequacy regulations should be applied in Sweden. The measures presented by Finansinspektionen were mostly already known, but the way they are implemented is of course important. This applies in particular to the implementation of a CET 1 capital requirement of 12 per cent for the major Swedish banks, an increase in the risk weight floor for Swedish mortgages to 25 per cent, and the introduction of countercyclical capital buffers. 9  Other macroprudential policy issues discussed include the risks linked to our large and interlinked banking system, which has a high degree of market funding, and various types of measure related to these risks. You can read more about this in the minutes from the meeting in May. See http://www.regeringen.se/sb/d/18209/a/241631. BIS central bankers’ speeches  5  The Council’s meetings are prepared in the drafting committee, which consists of high-level representatives from the various authorities. The drafting committee has held regular meetings during the spring. Each respective authority has worked intensively on various questions, and there has been a substantial exchange of information and analysis between the authorities under the umbrella of the drafting committee. It has been both useful and educational to hear the other authorities’ views on the stability situation and the need for measures.