The Swedish mortgage borrowers often have difficult decisions to make when it comes to fixing the interest rate, or letting it remain variable.
The variable interest rate is often lower, and thus advantageous for Swedish households.
But when the Riksbank raised the key interest rate in 2022-2023, there were other bumps.
That’s how you get an interest rate reduction right now – with the bank trick
Fixed loan or variable?
Then it was instead those with fixed loans who could laugh all the way to the bank. Those with variable interest rates saw their monthly costs rise at a catastrophic rate with each increase from the Riksbank, and trembled before each monetary policy meeting.
Those with fixed interest rates did not have that problem, whose interest costs remained at the same level as before the Riksbank’s decision.
Anna Breman knew full well
Knowing whether to fix the interest rate or not is difficult because you do not know what decisions the Riksbank’s Monetary Policy Council will make. Unless you yourself sit in the Riksbank’s management, of course.
Anna Bremen is deputy governor of the Riksbank and actually tied his interest rates to 1.44 percent just a few days before the Riksbank decided to raise the policy rate.
This is evident from information submitted to the Riksdag, and which Swedish daily newspaper took part in.
But Anna Breman does not think it is inappropriate to fix the interest rate just before the decision to raise the interest rate for almost everyone else.
– We only follow the guidelines established by the Riksdag, Breman commented to SvD.
Aino Bunge has also committed the loans
Most of the Riksbank’s managers have variable loans and thus pay at the same level as other Swedes.
But Breman and Aino Bunge, two of five decision-makers at the bank’s top, have tied up their loans, according to the paper.
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The shock: The Riksbank’s horrendous interest rate may remain throughout the summer