Swedens Policy Rate

Mortgage rates rise despite unchanged policy rate – why is this happening?

On March 19, 2026, the Riksbank decided to keep the policy rate at 1.75 percent. Despite this, several major banks raised their mortgage rates at the end of March. Many are therefore wondering why mortgage costs can increase even when the Riksbank has not changed the policy rate, and what this means for household finances.

Policy rate and mortgage rate – what is the difference?

The policy rate is the interest rate set by the Riksbank to influence inflation and economic development in Sweden. It serves as a guideline for other interest rates in the economy, but it is the banks themselves that set their mortgage rates. Mortgage rates are influenced by several factors, including the banks' own funding costs and their assessments of future economic conditions.

Currently, the deposit rate (the rate banks receive when depositing money with the Riksbank) is 0.10 percentage points below the policy rate, and the lending rate (the rate banks pay when borrowing from the Riksbank) is 0.10 percentage points above. However, mortgage rates can fluctuate more than this, depending on market conditions and the banks' own decisions.

Why are banks raising mortgage rates when the policy rate is unchanged?

The banks' increases are not a direct consequence of the Riksbank's latest decision, but rather a reaction to expectations of future rate hikes. The background includes an energy shock that has contributed to higher inflation, prompting banks such as SEB to adjust their interest rate forecasts upwards. Therefore, banks choose to raise mortgage rates now, based on their assessments of future developments.

This means that households with variable-rate mortgages may face higher monthly costs before the Riksbank potentially changes the policy rate.

How can households be affected?

• Mortgages: If you have a variable interest rate on your mortgage, your monthly cost can increase directly when the bank adjusts the rate, even if the policy rate remains unchanged. This can affect the household budget.
• Personal loans: Interest rates on personal loans can also be influenced by the banks' expectations, but changes usually occur more slowly than for mortgages.
• Savings: Deposit rates on savings accounts often follow the policy rate, but they are rarely raised as much or as quickly as mortgage rates. This means that the return on savings may remain at roughly the same level, even as borrowing costs rise.

What can you do?

• If you have a variable-rate mortgage, it may be wise to calculate how a higher interest rate would affect your finances. Fixing the interest rate could be an option, but it is difficult to predict exactly how both the policy rate and mortgage rates will develop.
• If you are planning to take out new loans, it may be prudent to calculate based on the possibility that interest rates will change, and to have margins for potentially higher monthly costs.
• For those saving in an account, it is good to know that deposit rates do not always rise at the same pace as mortgage rates. If you are seeking higher returns, it may be relevant to review other savings forms, but these also involve higher risks.

What happens next?

The banks' actions show that the market can react to expectations of future inflation and interest rate hikes, even before the Riksbank makes new decisions. The next monetary policy update from the Riksbank is scheduled for January 2026, but mortgage rates may continue to change beforehand depending on market developments. It may therefore be beneficial to follow both the banks' and the Riksbank's announcements to plan your finances.