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Riksbank chief says major banks raising mortgage rates

Economy & businessEconomy
Key Points
  • Riksbank Governor Erik Thedéen says major banks are raising variable mortgage rates.
  • Thedéen attributes this to increased funding costs from market interest rates.
  • He reportedly questions why savings and transaction account rates are not rising similarly.

Riksbank Governor Erik Thedéen has stated that it is not surprising that major banks have started raising interest rates on variable-rate mortgages. According to Thedéen, banks' funding through market interest rates has become more expensive. He reportedly questions why banks' interest rates on savings and transaction accounts are not following upward.

Thedéen noted that banks typically follow market interest rates as they rise or fall, and this correlation is usually strong.

it is not surprising that major banks have started raising interest rates on variable-rate mortgages

Erik Thedéen, Riksbank Governor

banks' funding through market interest rates has become more expensive

Erik Thedéen, Riksbank Governor

why banks' interest rates on savings and transaction accounts are not following upward

Erik Thedéen, Riksbank Governor

banks typically follow market interest rates as they rise or fall, and this correlation is usually strong

Erik Thedéen, Riksbank Governor

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