The list rate is the one that the bank advertises to the public, and the actual rate usually falls below this level, due to various types of discounts. The so-called average interest rate for a variable mortgage from Swedbank in January was 3.65 percent.
The announcement about Swedbank’s interest rate increase came even before Monday’s inflation figures for January from Statistics Sweden (SCB). After the Statistics Sweden figures, which showed an unexpected rise in underlying inflation – excluding interest and energy prices – Swedbank’s economists also raised their forecast for the Riksbank’s key interest rate.
According to Swedbank, it is now leaning towards another rate hike of 50 basis points in April, followed by another 25 basis point increase in June, which would bring the policy rate to a peak of 3.75 percent.
Previously, the Swedbank economists’ interest rate peak was 3.50 percent.
“The Riksbank has indicated that they have a low tolerance for inflation above the forecast in the short term. Between now and April, two more inflation figures will be published and we think it is likely that core inflation will remain above the Riksbank’s forecast until then,” Swedbank’s economists write.