Swedbank

Major Banks: A Heavy Burden on the Stockholm Stock Exchange

After a day when the courses first fell but then recovered, the Stockholm Stock Exchange's broad OMXS index ended the week with a plus of 0.1 percent. But the major banks had a tough day.

The Verdict: Too Cautious by the Central Bank

Completely too cautious and a decision that can have major consequences for the Swedish economy. Economists are critical of the Swedish Central Bank's interest rate forecast for 2025. It will not provide the boost that the economy needs, says Swedbank's chief economist Mattias Persson to TT.

Major Banks Lower Mortgage Interest Rates

Several banks are now adjusting their mortgage rates downward following the Swedish Central Bank's lowering of the interest rate.

Housing index rises – indicating higher prices

So much did the mortgage rates fall in November

Between 0.10 and 0.40 percentage units. That's how much the major banks lowered the variable mortgage interest rate in November, according to the actual interest rate that customers pay on average. The gap between the variable and fixed interest rate is now shrinking rapidly.

Slow in the Service Sector

The Purchasing Managers' Index for the private service sector fell to 50.9 in November, from revised 53.1 in October, according to Swedbank and Silf. The decline was unexpected.

The Warning: Food Prices May Be on the Way Up

Inflation is expected to rise again when the figures for November are reported this week. Once again, households must prepare for more expensive food. I think it looks quite negative. The signals in recent times are that food prices are being pushed up, says Carl Nilsson, economist at Swedbank.

Industry steps up the pace – "industry temperature rise"

The Purchasing Managers' Index rose to 53.8 in November, from revised 53.2 in October, according to Swedbank and Silf. It was primarily production that performed strongly.