for resource utilisation and inflation. however, we still anticipated that inflation would be in line with the target two years ahead. the conclusion drawn by the riksbank in august with regard to future inflation still largely stands, in my opinion. however, there may be reason for some upward revision to the inflation forecast made in may, and perhaps even to the one made in august. one factor which could indicate a higher inflation rate, at least in the short term, is the high oil prices. resource utilisation may also be slightly higher than anticipated in the coming years. one reason is the strong figures for swedish growth that we have seen over the summer. another is that fiscal policy will probably become more expansionary now. inflation can nevertheless be expected to be in line with the riksbank's target two years from now. this is also the picture painted in a speech by riksbank governor lars heikensten in london today. conclusion let me summarise what i have said this evening. despite stock market fluctuations and a periodically weak economic climate, both household indebtedness and house prices have increased substantially, on a national level, in recent years. there have been similar developments in many countries, and households ’ debts and interest payments as a percentage of disposable income are not remarkably high in sweden. although the debt ratio is approaching the high level prior to the financial crisis at the beginning of the 1990s, the low interest rates have meant at the same time that households'interest expenditure as a percentage of income has largely been halved since then. our calculations also indicate that households with debts on average have a relatively good safety margin for interest rate rises and reductions in income. we therefore do not at present envisage any major problems for the household sector as a whole, even if interest rates rise significantly. however, this does not mean that problems will not arise for individual households in the case of higher interest rates. it is important that borrowers include rising interest rate expenditure in their calculations and carefully consider what level of indebtedness they can manage when interest rates sooner or later begin to rise. for this reason, we have emphasised in connection with our monetary policy decisions over the past six months that interest rates are at present low in a historical perspective and will need to be raised in the long run. with regard to house prices, the calculations we have made so far do not indicate that prices for housing in the country as a whole are substantially un

of these challenges perhaps a little earlier than many other european countries. and because we share similar experiences – still fresh in our memories – of major banking crises in the nordic countries, we have perhaps a head start when it comes to recognizing and trying to deal with these challenges on a nordic level, even if much worksstill remains. here, i might add that integration on a pan - nordic level has also come a long way in the area of securities exchanges and clearing and settlement facilities. of course, the integration of the financial infrastructure poses similar challenges for authorities to cross - border banking and some additional complications as well. however, today i will focus on the challenges posed by cross - border banks. and i must stress that these challenges are not merely a regional problem. due to the dynamic changes in the banking landscape, they will indeed require solutions on a european level. my main message today is that increased coordination is imperative, and, in this, it is vitally important that future arrangements for supervision, crisis management and crisis resolution of cross - border banks must be dealt with jointly as a package, and not in isolation from each other. it is apparent that the solutions in any one of these areas will depend on the solutions in the other areas. in particular, it will be necessary to address the issue of burden - sharing arrangements for the eventuality that a border - crossing bank becomes insolvent. if we don ’ t, there is a great danger that crisis management fails and valuable time will be lost. it will not be easy to achieve the necessary coordination and not least to deal with some potentially complicating conflicts of interests, and much more analysis is needed. however, i will at the end of my speech try to sketch some possible routes ahead. coordination issues to make my points clear, i think a crisis scenario could be a useful starting point. consider a large cross - border bank encountering some financial troubles, and suppose the bank is systemically important in at least one of the countries in which it operates. the number one concern for authorities would be to limit the social costs of a potential banking failure and to stop contagion to other parts of the financial system. for this, efficient crisis management is key. the successfulness of the crisis management, in turn, critically depends on a number of factors, such as coordination of information and decision - making, which in turn depend on how well conflicts of interests can be managed. information first of all, you need access to relevant