Swedish Riksbank Governor Erik Thedéen has raised questions about why major banks are increasing mortgage interest rates while leaving savings account rates unchanged. According to reports, several major Swedish banks including SBAB, SEB, Swedbank, and Nordea have recently raised their mortgage interest rates, with some increases amounting to 0.15 percentage points for variable-rate mortgages with three-month lock-in periods.
Thedéen stated that it's not surprising that major banks have begun raising interest rates on variable-rate mortgages, as banks' funding through market interest rates has become more expensive. However, he questioned why banks' interest rates on savings and transaction accounts aren't following the upward trend.
Banks follow market interest rates when they rise or fall. We monitor that closely and there's usually a fairly strong correlation
"Banks follow market interest rates when they rise or fall. We monitor that closely and there's usually a fairly strong correlation," Thedéen reportedly said about the mortgage rate increases. But he added that the same adjustment should be visible when it comes to banks' deposits from customers, meaning on interest rates for savings and transaction accounts.
"It's a question that should be raised. How does it look with savings rates?" Thedéen added, according to sources. The Riksbank has not yet raised its policy rate, though market actors expect rate hikes this year as a result of rising inflation following the Iran war.
It's a question that should be raised. How does it look with savings rates?