"It is better to do it in the near future rather than to wait", says Aino Bunge in a speech according to a press release from the Central Bank.
When it comes to the turnaround in the Swedish economy, she points out, among other things, that the turnover on the housing market has increased and that housing construction is no longer falling.
"Furthermore, household consumption is expected to increase in line with rising real wages, falling interest rates, and more expansive fiscal policy", she says.
This afternoon, the Governor of the Central Bank, Erik Thedéen, will also give a speech.
The speeches are being held two weeks before the next interest rate decision from the Central Bank, scheduled for January 29.
Economists expect one or two interest rate cuts during the first quarter of the year, down to 2.25 percent or 2.00 percent, according to a recent survey from Bloomberg. The Central Bank has only hinted at a cut to 2.25 percent in its latest interest rate path.
Variable mortgage rates usually follow the interest rate upwards and downwards.
If the mortgage rate on a mortgage loan were to fall by 0.50 percentage points, it would reduce the interest cost for a mortgage loan of three million kronor by 15,000 kronor per year or 1,250 kronor per month – if you disregard the effects of interest deductions.
