Swedens Policy Rate

Mortgage rates rise despite unchanged benchmark rate – how it affects your wallet

Although the Riksbank chose to leave the benchmark rate unchanged at 1.75 percent at its meeting in March, several of Sweden's largest banks have raised their mortgage rates during late March and early April. This means that many households may face higher monthly costs for their mortgages, even though the official interest rate set by the Riksbank remains unchanged.

What has happened?

• The Riksbank kept the benchmark rate unchanged at 1.75 percent on March 19, 2026.
• Several major banks have nonetheless decided to raise their mortgage rates in recent weeks.
• Experts point out that banks' own cost of funds has increased, partly due to concerns about inflation and an energy shock that may have pushed up banks' borrowing costs.
• SEB has raised its forecasts for future interest rates as a result of energy prices.
• The Riksbank has expressed concern about so-called stagflation – a situation where the economy has low growth while inflation is high.

Why does this matter?

For households, the banks' rate hikes mean that mortgage costs can increase immediately, even if the benchmark rate does not change. There is thus a difference between the Riksbank's official rate and what you actually pay for your loan. The banks' decisions can also signal that the market expects higher interest rates in the future, which affects both new loans and renegotiations of existing loans.

Savers can also be affected, as higher mortgage rates sometimes coincide with higher savings rates – but this is not always the case. If inflation is simultaneously high, money in savings accounts with low interest rates risks losing value.

How should you think about mortgages, personal loans, and savings?

• Check whether your mortgage is variable or fixed – variable loans are usually affected more quickly by banks' rate hikes.
• Do not assume that the benchmark rate alone determines your interest rate. Banks' own costs and market conditions can lead to increases even when the Riksbank does not change the benchmark rate.
• If you are taking out a new loan or wish to renegotiate, interest rates may now be higher than the official benchmark rate suggests.
• Review your savings. If inflation is high and the savings rate is low, it may be wise to compare different savings options.
• Follow the development of energy prices and inflation, as these factors currently have a significant impact on interest rates.

Important things to keep in mind

• The banks' rate hikes do not automatically mean that the Riksbank will raise the benchmark rate at the next meeting. The two decisions are driven by different factors.
• Not all banks act exactly the same. Check what applies to your specific loan and bank.
• The term "stagflation" means that the economy has low growth while prices are rising rapidly – an unusual and challenging situation that makes it harder to predict future interest rates.