Swedens Policy Rate

Mortgages become more expensive despite unchanged policy rate – how it affects your finances

On March 19, 2026, the Riksbank decided to leave the policy rate unchanged at 1.75 percent. Despite this announcement, several major banks raised their mortgage rates at the end of March. The background is that the banks' own interest rate forecasts have been adjusted upwards, primarily due to an energy shock and increased concerns about inflation. This means that banks are acting faster than the Riksbank and raising rates for their customers already now.

Why do banks' interest rates differ from the Riksbank's decision?

The policy rate is the rate set by the Riksbank to influence inflation and steer the economy in the long term. Banks' mortgage rates, however, are determined by several factors, including their own expectations of future interest rate levels and risks. When energy prices rise and inflation appears to be picking up, banks often raise their rates in advance to protect their margins. This is why you, as a mortgage customer, may face higher monthly costs even if the Riksbank's policy rate remains unchanged.

What this means for you with mortgages, personal loans, and savings

• Mortgages: If you have a variable rate, your monthly cost may increase as early as the next statement, even without a new announcement from the Riksbank. Check if your bank has adjusted your rate.
• Personal loans: Personal loans with variable rates can also become more expensive when banks adjust their rates upwards.
• Savings: When banks raise mortgage rates, deposit rates on savings accounts usually move upwards as well, but often with a delay and not always at the same pace.
• Daily finances: Higher loan costs hit the household budget directly. It is wise to review your finances and consider fixing your rate if you want security.

What should you keep in mind now?

• Don't just follow the Riksbank's announcements – the banks' own forecasts often determine when your rate changes.
• Expect the discussion about future rate hikes to continue, especially ahead of the next Riksbank meeting on May 7.
• Avoid drawing conclusions about the policy rate's development solely based on banks' rate hikes – they may act on their own inflation assessments.
• Note that energy prices and inflation are the most important factors behind the banks' actions right now.

The difference between the policy rate and the mortgage rate

The policy rate is the Riksbank's tool to reach its inflation target and affects banks' cost of borrowing money. The mortgage rate is the rate you actually pay to the bank – and it can move up or down independently of the Riksbank's latest decision, especially when the economy is uncertain.

Summary advice

• Check if your mortgage rate has been raised.
• Review your household budget and prepare for possible further increases.
• Compare interest rates from different banks and consider negotiating your loan.
• For savers: keep an eye out for whether banks also raise deposit rates.