he Swedish Central Bank is expected to continue lowering the interest rate, which may bottom out at 2.00-2.25% next year accordingly to experts. This is because inflation may increase.
Finance Minister Elisabeth Svantesson (M) believes that Trump's presidency can increase inflation in Sweden. In the long run, with more protectionism, tariffs, and Trump as president, an expansive fiscal policy is likely to lead to higher growth but also a larger budget deficit.
If there is an expansive budget in the near future, inflation risks taking off. Then interest rates will be affected, of course, says Svantesson.
Major Swedish banks lowers mortgage rates
Several major Swedish banks will lower their mortgage rates, including SEB, Swedbank, and Nordea, which have announced that they will lower their variable rates by 0.50 percentage points.
Effect on your household economy
If you have a mortgage of 3 million kronor, this rate cut means you will pay 1,250 SEK less per month in interest, without taking into account amortization.
Remember that even if you have a variable rate, it is tied to a 3-month period, so the new rate will take effect when your new 3-month period begins. However, if you choose to lock in your mortgage for a period, the rate will take effect immediately.
