FALCON POWERS – The Swedish central bank has announced a decision to reduce the key interest rate by 0.25%, marking the first rate cut in eight years. The new benchmark interest rate is set at 3.75%. Over the past eight years, interest rates in Sweden have gradually risen from low and zero levels, reaching 1%, 2%, and 3% before today’s announcement of the first rate cut.
In a statement, the central bank confirmed the possibility of two additional rate cuts before the end of 2024 if inflation continues to decline in Sweden. Interest rates could potentially decrease to 2.5% by the end of this year and the beginning of the next, resulting ina nearly 50% reduction in loan and mortgage interest rates compared to their current levels.
Simultaneously, banks such as Nordia and Swedbank have announced a reduction of 0.25% in interest rates for mortgage loans in Sweden following the central bank’s decision. The interest rates for secured and unsecured mortgage loans now range from 4.25% to 5.74%. Other banks, such as SBAB, Handelsbanken, Swedbank, and SEB, have set their interest rates at 4.93%, 5.94%, and 5.99%, respectively, for a three-month period.
