SBAB had previously expected a rate increase from the Swedish Central Bank in November.
"Due to the unexpectedly low inflation outcome in August, we have therefore postponed the first increase in the policy rate," says Robert Boije, chief economist at SBAB, in a press release.
Inflation is expected to rise going forward and with upcoming increases in the key interest rate, "variable mortgage rates are expected to rise by 0.5 percentage points by the beginning of next year and longer-term fixed mortgage rates by almost the same amount," the bank writes.
According to SBAB, the forecast for GDP, inflation, but also interest rates, is "very uncertain" because of the geopolitical situation.
“The supposedly difficult government formation adds another small layer of uncertainty,” says Boije.
House prices are expected to increase by around 4 percent this year and GDP growth is set at 2.5 percent this year and 2.6 percent next year.
