Even if Riksbanken stops raising interest rates, mortgage rates may continue to rise

Sep. 02, 2023

Hard-pressed households may begin to see an end to the Riksbank's interest rate hikes. But mortgage rates may continue to rise even after the Riksbank's presumed last increase in November. Swedish House of Finance visiting professor Roine Vestman tells Svenska Dagbladet that previous periods of rising Riksbank interest rates show that it takes time before deposit rates catch up. When that finally happens (due to increased competition), banks may compensate with higher lending rates. This means that the increase in the variable mortgage interest rate will be pushed upwards, in addition to the increases from the Riksbank.