Sparekonom expect continued low mortgage rates – LO welcomes the restraint

During Wednesday morning, the Riksbank announced the first interest rate announcement. As expected, leaving the bank rate unchanged. The riksbank let the repo rate remain at minus 0.25%. The assessment is that interest rate increases may be made during the autumn.

− This means no direct changes. When the Riksbank raised interest rates in december, many banks are quick to blame the higher cost of financing and therefore raised their mortgage rates. But the excuse has been they don't now, " says Johanna Litter, sparekonom on the Avanza.

" this news confirms that we have low interest rates, and there is much to suggest that this is in and of itself for a while to come. But there is clearly reason for individuals to compare and bargain on their mortgage rate because we have increased competition in the market with low interest rates, which will stand until at least the second half of 2019.

that the Riksbank's notice of an upcoming interest rate hike is certainly not.

− It is not cast in stone that it will be raising interest rates. Just as they write so it depends very much on how it goes for the global economy, and if economic and inflation prospects is because the development in Sweden and the outside world has entered a phase of lower growth, " she says.

Ola Pettersson, chief economist of the LO, is generally sympathetic to the Riksbank's announcement.

" I think this is a good news. It is very important that the Riksbank is restrained, and that they continue to be in the future. This will increase Sweden's chances to reach a high level of employment, " he says.

Ola Pettersson is the LO's chief economist. Photo: Hugo Nabo/LO

− the Riksbank cannot do much more, and have no reason to go forward with some increases.

it is good that the mortgage rate is not increased.

− the Riksbank should not weigh in on this in its monetary policy. It is in my view primarily a political issue. I think that the division of responsibilities so as it looks now, is to be preferred, " he says.

the Next monetary policy announcement from the Riksbank will on 25 april 2019.

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