(Bloomberg) -- Sweden’s central bank said its moves to curb inflation are likely to lead to a deeper plunge in the housing market that’s already in the midst of one of the worst routs globally.

Housing prices, in Riksbank’s forecast “will continue to fall over the coming year,” officials said on Thursday after new Governor Erik Thedeen started his tenure by raising rates and announcing bond sales. “There’s a risk that they will fall even more than is now being assumed,” they said.

“This could cause both housing investment and household consumption, and thereby also inflation, to be weaker than in the forecast,” the Riksbank said. It estimates a total peak-to-trough drop of “at most about 20%,” which would bring prices back to pre-pandemic levels.

The Swedish housing market has become emblematic of a broader move lower in property prices as central banks across the world raise rates to tame inflation. The situation has become particularly acute in the Nordic country, with prices now down about 16% from the peak almost a year ago.

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