Several major Swedish banks have raised their variable mortgage rates by 0.15 percentage points, despite the Riksbank leaving its policy rate unchanged. The increases are attributed to higher funding costs for banks amid market expectations. Finance Minister Elisabeth Svantesson describes the moves as detached from reality.
Swedbank and Nordea raised their three-month mortgage rates by 0.15 percentage points on Monday, followed by SBAB and SEB on Tuesday. SBAB increased rates between 0.05 and 0.15 percentage points, while SEB also lifted its three-month rate by 0.15 points. Skandia has similarly raised by 0.15 points. The reason is rising interbank lending rates, according to Robert Boije, chief economist at SBAB.
"Many believe there is an exact link between the Riksbank's policy rate and banks' variable mortgage rates, but that is not the case," Boije says. Despite the hikes, both Swedbank and SBAB forecast stable rates ahead, with small changes in tenths of a percent. Swedbank expects the policy rate to remain unchanged until September 2027.
The war in the Middle East creates uncertainty. Swedbank warns that oil at $140 per barrel could push inflation above 5 percent, leading to a policy rate of 2.75 percent. Robert Boije does not anticipate a worst-case scenario like 2022.
Finance Minister Elisabeth Svantesson calls the hikes "detached from reality" on Facebook and urges Swedes to switch banks. Left Party leader Nooshi Dadgostar demands the government use SBAB to pressure rates down. "If Svantesson does not act, she has given the green light for banks to rob Swedish families," she says.
