Today, the Riksbank leaves interest rate announcement. A very interesting thing. Because despite the fact that hardly anyone is expecting a change in interest rates today, it is all the more unclear - and thus the more interesting - what is to come.

What does the Riksbank think about Sweden's interest rate future? Their forecast so far has been that the interest rate will be raised at the turn of the year, but this is something that more and more assessors believe will not be feasible.

Inflation is well below the target of two per cent and the economy in both Sweden and the outside world hardly speaks for a rate hike.

Whether the Riksbank adheres to its forecast or not, we are most likely to prepare for another year of record low interest rates.

And just as high interest rates can be challenging for the borrower, there are challenges in a low interest rate environment.

Above all, it is about how the low interest rate drives up the price of assets such as shares and real estate and makes it cheap to borrow. Something that, over time, can give distribution policy effects and increase the economic gaps in society.

As a private individual, however, there are some points to consider in order to turn the low interest rate to its advantage:

  • Don't have too much on a savings account - Of course, you should strive to have a buffer for unforeseen expenses, but the Swedes have a full 2 ​​trillion in account savings according to the latest statistics from Statistics Sweden. 2 trillion which thus does not give any interest at all.

    Over time, the savings account is usually a guaranteed loss transaction, as the money loses in purchasing power. After all, we have inflation in Sweden, albeit low. The savings account is the right place for your buffer money and for the money you plan to use over the next few years, but not the right place for your long-term savings.

    If you want to save your pension money in savings forms that grow over time, then broad funds with a low fee are the natural choice.
  • Save abroad - For the past five years, the Swedes' US funds have returned an average of 105 per cent on average. This is not only due to the strong performance of the US stock exchanges, about a third is a pure currency effect. Thus, an effect of the weakening of the Swedish krona against the dollar.

    A weakened currency has come as a letter on the record of the low interest rate we have in Sweden. And the risk that the krone will continue to lose in value is not negligible. To reduce the risk of your savings being eroded due to a weak krona, it is important not only to save in Swedish assets.

    You can do this most easily by plugging a global fund into your long-term fund savings. A global fund provides part of the world's growth and you do not become dependent on a country, market or currency.
  • Don't get interest-free - Apart from the last few months, the banks' margin on mortgages has actually increased in recent years. It has several explanations and one of them is likely that we private individuals have become somewhat interest-free to some extent.

    When the interest rate is already historically low, it is simply easy to forget that half a percent lower interest rate actually always means SEK 5,000 lower interest cost per year and million you have in loans. No matter the interest rate situation.

    It does not matter if the base rate is at 1, 2 or 3 percent, your savings will be equal.

    So don't become interest-free just because interest rates are historically low today.