Swedens Policy Rate

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

Following the Riksbank's latest announcement on March 19, 2026, the policy rate remains at 1.75 percent. Despite this, several of the largest banks have raised their mortgage interest rates during late March. This may seem contradictory, but the background is a combination of concerns over rising inflation, higher energy prices, and revised interest rate forecasts from institutions such as SEB. This has clear consequences for household finances, both for those with loans and for savers.

What is the difference between the policy rate and the mortgage rate?

The policy rate is the interest rate set by the Riksbank to control inflation in Sweden. It affects banks' costs for borrowing and depositing money with the Riksbank and serves as a guideline for the interest rate environment in the economy. The mortgage rate, on the other hand, is the interest rate the bank charges you as a mortgage borrower. It is not determined solely by the policy rate, but also by the banks' own funding costs, expectations of future interest rates, and how risky the bank assesses lending to be.

This means that mortgage rates can go up or down even if the policy rate remains unchanged. Right now, we are seeing exactly this – banks have chosen to raise their mortgage rates even though the Riksbank has not changed the policy rate.

Why are banks raising mortgage rates now?

• Higher interest rate forecasts: SEB and other actors have raised their forecasts for future interest rates following an energy shock, which affects banks' costs and pricing.
• Concerns over inflation: Energy prices have risen rapidly, increasing inflationary pressure. This leads banks to expect higher interest rates in the future and to compensate by raising mortgage rates now.
• Market rates and financing costs: Banks' own costs for borrowing money have increased due to market uncertainty, something that often impacts mortgage rates faster than the policy rate.
• Banks' margins: In times of uncertainty regarding future costs, banks sometimes choose to increase their margins to reduce risk in their own operations.

How to think about mortgages, personal loans, and savings right now

• Check if your mortgage rate has increased, even if you have a variable-rate loan. The bank is not obliged to follow the policy rate exactly.
• Consider fixing your interest rate if you believe rates will rise further, but weigh this against the cost of fixing compared to a variable rate.
• If you have personal loans, be aware that interest costs may increase even if the Riksbank has not decided on a rate hike.
• Savers may benefit in the long run if banks raise deposit rates, but it is not certain that this will happen at the same pace as mortgage rates rise.
• Review your budget and calculate how higher interest costs would affect your finances. Talk to your bank about what alternatives are available.

Important things to keep separate

• The policy rate is the Riksbank's tool for controlling inflation, but the mortgage rate is determined by the banks and is influenced by more factors.
• An unchanged policy rate does not automatically mean your mortgage rate will remain stable.
• Market rates and energy prices can change quickly and influence banks' decisions before the Riksbank acts.
• Banks' rate hikes are sometimes a way to stay a step ahead – but they can also change quickly if the situation stabilizes.

What happens next?

The Riksbank has expressed concern about inflation but assesses that it is robust to keep the rate unchanged for now. The next monetary policy update is scheduled for May 7, 2026. In the meantime, banks may continue to adjust their rates based on market developments, even if the Riksbank remains stationary. It is therefore important for you as a borrower or saver to keep track of both the policy rate and the banks' own announcements.