On Tuesday, the Swedish Central Bank lowered the interest rate by 0.25 percentage points to 1.75 percent. Now, several major banks have responded by lowering their variable mortgage rates.
On Wednesday, Nordea, Swedbank, and SEB announced their rate cuts, followed by Handelsbanken on Thursday morning. However, the major banks' rate cuts are lower than the Swedish Central Bank's.
That it looks like this is not entirely unusual. However, this time, the major banks, with rate cuts of 0.2 percentage points, have been unusually cautious, according to Christina Sahlberg at the comparison site Compricer.
"Waited for each other"
It usually happens directly on the day when the news arrives. That was not the case this time either. It feels like they sat and waited for each other, and then one of them made a move, and the others followed, she says.
According to Sahlberg, the banks have previously, on average, lowered the average interest rate by 0.23 percentage points when the Swedish Central Bank has lowered the rate by 0.25.
They may be taking a chance now, which increases their margins and earns them more money, she says and continues:
These 0.05 percentage points that they do not lower are about enormous amounts of money for the banks.
The actions have also prompted Finance Minister Elisabeth Svantesson (The Moderate Party) to react.
Many families have had a tough time for a long time. We have all helped to get inflation down. The Swedish Central Bank, the parties, and the government, everyone has taken their responsibility. Now that the banks do not take their responsibility, it is noticeable to many Swedes, she says to Affärsvärlden.
"Ongoing adjustments"
According to Swedbank's press officer Hannes Mård, the bank's list prices for mortgages are more affected by market interest rate movements than by the Swedish Central Bank's rate cut.
Then we have a pricing strategy that we follow, and the starting point is that we should have a competitive price and a good overall offer, he says and continues:
Based on those premises, we follow the interest rate situation and make ongoing adjustments.
Christina Sahlberg does not think much of the banks' explanations.
From October 1, they will have a 0.25 percentage point lower borrowing cost. As a consumer, it is essential to keep an eye on your bank now and make comparisons, she says.
