Swedens Policy Rate

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

Although the Riksbank decided to keep the policy rate unchanged at 1.75 percent on March 19, several major banks raised their mortgage rates at the end of March. This has resulted in increased monthly costs for many households and raised questions about why mortgage rates can rise even when the official policy rate remains unchanged.

What has happened?

• The policy rate remains at 1.75 percent following the Riksbank's announcement on March 19.
• On March 30–31, major banks raised their mortgage rates.
• The Riksbank has noted that the banks' rate hikes could influence future policy rate decisions.
• Inflation and rising oil prices are cited as factors behind the increased uncertainty.

Why does it matter?

For households with mortgages, the banks' rate hikes mean that the actual interest cost can increase, even if the policy rate is unchanged. This illustrates that mortgage rates do not always follow the policy rate directly but are influenced by the banks' own risk assessments, costs of funding loans, and market expectations regarding inflation.

The Riksbank has also highlighted that the banks' actions could impact future policy rate decisions, especially if inflation does not develop as expected. Analysts point to the risk of stagflation – a combination of low growth and high inflation – which could create further uncertainty regarding both the policy rate and mortgage rates in the future.

How should you think about loans, savings, and finances?

• Review your loan terms: Even if the policy rate is unchanged, your bank may have raised your mortgage rate. Check current terms and note any changes to your monthly payment.
• Expect increased costs: Banks' rate hikes can occur before the Riksbank changes the policy rate. This could mean higher expenses right now.
• Savings rates may also be affected: The banks' interest rate decisions apply not only to loans but can also lead to upward adjustments in interest rates on savings accounts.
• Plan for uncertainty: The banks' hikes may indicate that the interest rate environment is more volatile than expected. It may be wise to maintain margins in your budget and closely monitor developments.

Important things to watch out for

• An unchanged policy rate does not automatically mean the mortgage rate stands still. The banks' own decisions can affect your finances independently of the Riksbank's announcements.
• The banks' actions can provide an indication of market expectations but are no guarantee of how the Riksbank will act in the future. Forecasts regarding future interest rate developments are always associated with uncertainty.
• Events have developed rapidly at the end of March 2026. Always check current information regarding your own bank and loan situation.