The Swedish economy has weathered a period of rising interest rates but must become even more stable and function better to avoid bigger problems in case of future policy tightening, Riksbank Deputy Governor Aino Bunge said on Thursday.

"It is not unlikely that in the future we will once again see periods of low inflation and low interest rates, interrupted from time to time by rising inflation and a policy rate that needs to be raised, possibly more than has been the case this time," Bunge said.

(Reporting by Louise Rasmussen, editing by Terje Solsvik)