The two reductions of 0.25 percentage points each would bring down the repo rate to 1.75 percent – compared to today's 2.25 percent.
This scenario can be compared to the situation before the US President Donald Trump's tariff shock on April 2, when the market expected the next interest rate adjustment from the Swedish Central Bank to be an increase.
The Swedish Central Bank's board presented, in connection with the latest interest rate decision on March 20, a so-called interest rate path – i.e. a forecast for the repo rate – which remained flat at 2.25 percent in the repo rate until the first quarter of 2028.
The repo rate sets the tone for the entire economy's interest rate situation, but particularly affects variable mortgage rates. If the mortgage rate were to be lowered by 0.50 percentage points, it would reduce the interest cost for a mortgage of three million kronor by 15,000 kronor per year or 1,250 kronor per month – if one disregards the effects of interest deductions.
The next interest rate decision from the Swedish Central Bank is scheduled for May 8.
