On Tuesday, the policy rate was cut by 25 basis points to 3.5 percent. In connection with the interest rate announcement, the Riksbank Executive Board announced that the interest rate may be lowered several times before the end of the year.
“If the inflation outlook holds, the interest rate may be lowered two or three more times this year, which is somewhat faster than in the executive board’s assessment in June,” writes the Riksbank in a press release.
Several major banks have followed suit and lowered their mortgage interest rates recently.
“Tactics and empty words”
But the reductions are far too small and are more theater than truth. That’s what Claes Hemberg, independent economist, tells TV4 Nyheterna.
– When the Riksbank lowers by 0.25 percentage points, we should hear the same thing from the big banks. But they come up with their own measures and lower by, for example, 0.05 percentage points. This makes it very difficult for consumers to understand what is going on. The big banks are stingy and unclear, says Claes Hemberg.
According to Hemberg, consumers are deceived by the fact that the banks appear to be active when they adjust interest rates frequently.
– It’s more tactics and empty words than real promises to the consumer. This lowering every other day thing is ridiculous. It’s more theater than truth.
Want greater transparency
Claes Hemberg would have liked to see the Financial Supervisory Authority and other authorities place higher demands on how banks report figures on how they comply with the Riksbank’s instructions.
– Then they would have acted in a completely different way, but they are difficult to find. The banks like to talk about trust, but do not show that they have respect for the consumer, says Claes Hemberg.
At the same time, many people feel that it is difficult to negotiate mortgages. But changing banks – we don’t do that, says Claes Hemberg.
We move the mortgage once every 20 years on average. We change partners every eleven years. So we are more loyal with the bank than with our partner.
Swedbank cut its floating list rate by 0.10 percentage points last week and another 0.10 on Thursday. They do not want to answer questions about why they do not follow the Riksbank’s actions.