Swedens Policy Rate

Mortgage rates rise despite unchanged policy rate: How it affects your wallet

The Riksbank has recently decided to keep the policy rate unchanged at 1.75 percent. Despite this, several major banks have already raised their mortgage rates during late March and early April. This development implies a direct cost increase for many households and raises questions about how the interest rate market functions – and what you as a consumer should be aware of.

What has happened and why?

• The policy rate has remained unchanged at 1.75 percent since March 25, 2026.
• Major banks have raised mortgage rates, even though the Riksbank has not changed its rate.
• Behind the increases are, among other things, an energy shock that has driven up banks' own interest rate forecasts, as well as increased expectations of future policy rate hikes.
• The market rate Swestr, which reflects banks' cost of borrowing money from each other, has also risen and was recently noted between 1.60 and 1.81 percent.
• The next opportunity for the Riksbank to make a new monetary policy decision is May 7, 2026.

Why does this matter for households and individuals?

It is easy to believe that mortgage rates are only affected when the Riksbank raises or lowers the policy rate. In practice, however, banks set their own rates based on several factors – including expectations of future interest rate announcements, costs of borrowing money, and uncertainty in the market. When banks assess that their own costs are increasing, for example due to energy shocks or new forecasts of higher rates ahead, they may choose to raise the mortgage rate immediately. This means that as a borrower, you may face higher monthly costs even if the Riksbank has not changed the policy rate.

The same logic may apply to personal loans and consumer loans, although the change is often felt more quickly in mortgages because they are larger and often have variable rates.

For savers, this could eventually mean that interest rates on savings accounts also rise, but banks are often slower to raise savings rates than mortgage rates.

How can you think and act now?

• Check your mortgage rate: If you have a variable-rate mortgage, check if your bank has raised the rate and what it means for your monthly cost.
• Compare banks: Since banks set their own rates, it may pay off to review whether another bank offers a lower rate on mortgages or personal loans.
• Expect further increases: Banks' forecasts indicate that the policy rate may need to be raised later in the year, especially if inflation continues to be pushed up by energy prices and other factors.
• Monitor savings rates: Keep an eye on whether your bank adjusts the rate on savings accounts – this could be an opportunity to negotiate or switch to a bank offering better terms.
• Plan for uncertainty: The next interest rate announcement from the Riksbank will be on May 7. It may provide further news on which direction interest rates are heading.

Common misconceptions and what you need to know

• The policy rate is not the same as the mortgage rate. The Riksbank sets the policy rate, but banks set their own rates based on a range of factors.
• The mortgage rate can therefore change at any time, even between the Riksbank's meetings.
• The market often reacts faster than central banks – especially in uncertain times when energy prices and inflation forecasts change rapidly.

Summary for your everyday finances

The fact that mortgage rates are rising despite an unchanged policy rate shows that it is important to follow both market rates and banks' own decisions, not just the Riksbank's announcements. If you have loans, review what the increase means for your finances and consider whether it is time to fix the rate or negotiate. Savers may eventually get better terms, but they need to be active and compare alternatives. The next important date to watch is May 7, when the Riksbank may issue new announcements affecting both loans and savings.