- Inflation is far too high, said Governor Stefan Ingves last week when the central bank issued a new interest rate announcement.
The latest inflation figure, which measures price increases, landed at 7.2 per cent, well above the Riksbank's target of two per cent.
To dampen the development, the key interest rate was raised by 50 basis points to 0.75 per cent, the sharpest increase in 22 years.
Rapid interest rate increases
Several banks have followed suit and quickly raised their mortgage rates.
- The big banks are the ones that have raised slightly more, the other banks a little less.
But we can see that there will be an increase at about the same rate as the policy rate is raised, says Christina Sahlberg.
More interest rate hikes are to be expected.
SBAB writes in its latest forecast of mortgage interest rate developments that we should expect the new normal to be list interest rates (the interest rates that banks offer before negotiations) of around four percent.
Last week, Swedbank raised its forecast.
At the end of the year, the bank now believes that the mortgage rate will be just over three percent, instead of, as before, just below.
More to wait
- It is a clear upward revision and it is done against the background that inflation risks are high.
We believe that the Riksbank is lagging behind and that we need to raise more, says Mattias Persson, chief economist at Swedbank.
More interest rate hikes are to be expected.
The question is how fast it goes and how strong the increases will be.
- Many want to know how high it will go, but it is impossible to say, says Christina Sahlberg.