Swedens Policy Rate
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The policy rate stands still – but mortgage rates still rise
On March 19, 2026, the Riksbank (Swedish Central Bank) decided to leave the policy rate unchanged at 1.75 percent. The reasoning was that the forecasts for the Swedish economy are highly uncertain. At the same time, several banks have recently raised their mortgage rates. For many households with loans, this means that interest costs are increasing, even though the official interest rate environment has not changed.
Why are banks raising rates when the policy rate is unchanged?
The policy rate is the interest rate set by the Riksbank to influence the overall economy. Banks' mortgage rates are partly influenced by the policy rate, but also by other factors. Sources point out that banks are currently pricing in future risks and uncertainties. This can include:
- Expectations that the Riksbank may need to raise the policy rate earlier than expected, according to several experts and analysts.
- Banks' own funding costs may have increased, for example due to concerns in international financial markets.
- An uncertain economic forecast may lead banks to want larger margins to handle risks.
It is therefore not the Riksbank directly that sets your mortgage rate, but rather the bank setting its rate based on several factors. Therefore, mortgage rates can go up even if the policy rate stands still.
What does this mean for mortgages and personal loans?
For households with variable-rate loans, the banks' raised rates mean that monthly costs can increase, despite no signal of a rate hike coming from the Riksbank. Those with loans that have short fixed terms are usually affected most quickly by these changes.
Personal loans and other credit products may also become more expensive as banks' general interest levels rise. At the same time, savings rates may be affected, but it is not certain that they will rise at the same pace as lending rates.
How can households think about their finances?
- It is important to be aware that banks' rates can change even without a change in the policy rate.
- If you notice that your rate is rising significantly, it may be worth comparing with other banks or discussing the terms with your current bank.
- It is difficult to say what is most advantageous in the long run regarding interest rate fixation, as the market is currently unusually uncertain.
- Having room in the budget can make things easier if interest costs increase, especially for those with large loans.
Experts warn that rate hikes could come faster than previously thought, which makes it wise to follow developments closely in the future. At the same time, it is not certain that the policy rate will rise – the Riksbank has expressed clear uncertainty about the future.
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