Danske Bank sees three interest
Photo: Fredrik Sandberg/TT

Danske Bank sees three interest rate hikes until August

Danske Bank economists expect the Swedish Central Bank to raise the key interest rate to 2.00 percent in May, and then to 2.50 percent in August, according to a new main scenario.

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The energy-price shock and disrupted supply chains resulting from the Iran war and the closure of the Strait of Hormuz are expected to have significant inflationary effects.

Danske Bank's economists believe that the policy rate will then remain at this level until the end of 2027 and that, at the end of the forecast period - the beginning of 2028 - it will have been lowered again to 2.00 percent.

Variable mortgage rates normally follow the key interest rate. Three increases, or 0.75 percentage points, mean that the interest cost for a mortgage of three million kronor will cost an additional 22,500 kronor per year - if you ignore the effects of the interest deduction.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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