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Riksbank chief says major banks raising mortgage rates not surprising

Economy & businessEconomy
Key Points
  • Riksbank chief Erik Thedéen says major banks raising variable mortgage rates is not surprising.
  • Thedéen reportedly attributes this to banks' funding becoming more expensive via market rates.
  • He questions why banks' rates on savings and transaction accounts are not increasing similarly.

Riksbank chief Erik Thedéen said it is not surprising that major banks have started raising interest rates on variable-rate mortgages, according to reports from Smålandsposten and Skånska Dagbladet. Thedéen reportedly stated that banks' funding through market rates has become more expensive. He also questioned why banks' interest rates on savings and transaction accounts are not following upward.

Thedéen noted that banks typically follow market rates that rise or fall, and this correlation is usually strong, according to the reports.

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