Swedens Policy Rate

Mortgage rates rise despite unchanged policy rate – how it affects your finances

Although the Riksbank decided on March 19, 2026, to keep the policy rate unchanged at 1.75 percent, several major banks have raised their mortgage rates. This creates a situation where household costs are increasing, even though official monetary policy has not changed.

What has happened?

• The Riksbank has left the policy rate unchanged at 1.75 percent.
• Several major banks have nonetheless raised their mortgage rates during late March.
• Banks justify the increases with expectations of future rate hikes and increased costs for borrowing money, partly due to rising energy prices and inflation.
• SEB and the Swedish Economic Institute have adjusted their interest rate forecasts upward and expect the Riksbank may need to raise the policy rate during the spring or summer of 2026.
• The next interest rate announcement from the Riksbank will be on May 7, 2026.

Why does this matter for households?

Mortgage rates directly affect your monthly housing costs. When banks raise mortgage rates, the interest cost increases even if the Riksbank's policy rate remains unchanged. This is because banks do not just follow the current policy rate; they also factor in expectations of future interest rate changes and their own costs for borrowing money on the market.

Rising energy prices and continued inflation have led banks to see a risk of higher market interest rates in the future. Therefore, they choose to raise mortgage rates now. This means households with variable-rate loans face increased expenses, and personal loans may be affected in a similar way.

For those saving in accounts, higher interest rates could eventually mean better returns, but deposit rates do not always rise at the same pace as lending rates.

How can you think and act?

• Check if your loan is variable or fixed: Variable rates can rise quickly, while fixed loans offer security but often at a higher price.
• Monitor developments ahead of the next rate announcement: The next interest rate decision from the Riksbank will be on May 7, 2026. Uncertainty is high, and forecasts can change rapidly if energy prices or inflation take new jumps.
• Compare bank offers: There is often an opportunity to negotiate terms or switch banks to get a better rate.
• Plan for higher costs: Calculate how much a rate hike would affect your personal finances so you have time to adjust your budget if necessary.
• Distinguish between the policy rate and mortgage rates: The policy rate sets the direction, but banks' mortgage rates are also influenced by other factors. It is therefore not uncommon for mortgage rates to rise in advance.

Important differences and pitfalls

• The policy rate is the rate the Riksbank sets to control inflation and the economy in general. The mortgage rate is the rate the bank charges you, and it is influenced by more factors than just the policy rate.
• Banks' forecasts can change quickly if energy prices or inflation develop unexpectedly. This makes the future uncertain, especially for variable-rate loans.
• The deposit rate, i.e., what you earn on your savings account, is often lower than the policy rate. The lending rate on mortgages and personal loans is higher.

Ahead of the May announcement – what could happen?

With continued concern regarding energy prices and inflation, it is likely that the Riksbank may raise the policy rate at the next meeting in May, but it is not certain. Keep an eye on news and forecasts, especially if you have loans with variable interest rates. An active approach to your finances and loan terms can reduce the risk of unpleasant surprises.